08 April, 2011
The MPC kept the Bank of England base rate at 0.50% yesterday for the 25th consecutive month. Peter Toner of Forbes Financial Services advises borrowers should consider overpaying on their mortgages now to save money when rates do rise.
Overpaying while rates remain low offers the twin benefits of reducing the mortgage balance, thus mitigating the impact of the higher payment required as rates rise.
It is important to seek advice about the level of overpayments so that no penalty is incurred.