Last year was one of the busiest for the housing market in more than a decade, driven by a reassessment by many homeowners of where they are living – prompted by the COVID-19 pandemic, a search for more living space, low mortgage rates, better access to mortgages for first-time buyers, and, of course, the stamp duty holiday.
Many first-time buyers hope to make this year the year they get on the property ladder, thanks to the increasing availability of 95% mortgages. But while there are higher numbers of suitable mortgages available, there’s no guarantee you’ll be approved. To improve your chances, here are five of our top tips.
Overpaying on your mortgage can cut down the time it takes for you to repay the loan, and therefore the amount of interest you pay in total. If you’re beyond an introductory deal and are paying your lender’s standard variable rate (SVR), you can usually overpay by as much as you want.
Most lenders allow you to pay 10% of your mortgage balance as an overpayment per year if you’re still in your introductory fixed, tracker or discount period. However, the 10% rule is not universal.
But there are also downsides to be aware of. Some lenders may penalise those who try to overpay.
