Overpaying mortgages 'good property management'

News Category: Management

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Landlords considering their property management processes in the current climate may benefit from overpaying their monthly mortgage repayments.

Peter Bolton King, chief executive at the National Association of Estate Agents, has advised all homeowners that this could be a good move to undertake while interest rates remain at an all-time low level.

He explained that any landlord or other property owner can put themselves in a better financial position for when the base rate inevitably rises again in the future.

"If somebody is able to afford the increased payments, then clearly they have an opportunity for managing to pay back some of the mortgage," Mr Bolton King said.

"I don't think there is anything wrong in principle on that, its not being forced on them, it's an opportunity, they've just got to look at their overall finances."

His attitude reflects the recent comments from Council of Mortgage Lenders head of research Bob Pannell, who indicated that a lot of borrowers will opt to overpay on their home loans while interest rates remain at 0.5 per cent.

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