The Mortgage Loophole That Could Save You Thousands!

Think you’re stuck with high mortgage costs? This little-known tip can help! This mortgage “loophole” is a game-changer for homeowners looking to reduce costs and get ahead financially.

In This Blog, You’ll Learn:

✔️ What the mortgage “loophole” is

✔️ How to use it to your advantage

✔️ How it works

✔️ The benefits of using it

✔️ Important things to check before using the “loophole”

What Is the Mortgage “Loophole”?

It’s effectively tax-free saving! Here’s the simple rule:

If your mortgage interest rate is higher than what you earn in savings, overpaying is a smarter financial move.

Example:

💰 £10,000 in savings at 3% interest = earns £300 per year

🏡 £10,000 overpaid on a 5% mortgage = saves £500 per year

That’s an extra £200 saved, TAX-FREE, just by using your money wisely!

Overpaying on your mortgage is one of the most effective ways to reduce interest costs and pay off your mortgage faster.

Why Overpaying Works Like Tax-Free Saving

Most savings accounts are taxed, meaning you don’t get to keep all the interest you earn.

However, when you overpay your mortgage, every penny goes directly toward reducing your debt—so you’re saving at your full mortgage interest rate.

The Benefits of Overpaying Your Mortgage

✅ Pay off your mortgage faster

✅ Save thousands in interest payments

✅ Get better mortgage deals in the future (as you’ll owe less)

Before You Overpay: Important Things to Check

Before making any extra payments, check with your mortgage lender to avoid penalties and understand their rules:

Does your lender allow penalty-free overpayments?

• Standard Variable Rate (SVR) mortgages usually allow unlimited overpayments.

• Fixed-rate & tracker mortgages often limit overpayments to 10% of your total outstanding balance per year.

How is the 10% limit calculated?

Lenders calculate the 10% overpayment limit differently and rules vary, check with your lender first to see how much you can overpay without fees.

How will your overpayment be applied?

Ask your lender to reduce your total mortgage debt (shortening the term) instead of just lowering your monthly payments. This way, you get the biggest financial benefit from overpaying.

Want to Save Even More on Your Mortgage?

At More Financial, we offer FREE mortgage advice. Whether you:

✔️ Have questions about overpaying

✔️ Want to check if you’re on the best mortgage deal

✔️ Need a full mortgage review to see how much you could save

📞 Book a FREE appointment below and let’s see how we can save you money on your mortgage!

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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. More Financial is a trading name of Opulence Money Limited and is an appointed representative of Mortgage lntelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance, and consumer credit mediation activities. Company registered in England & Wales under number 10592352.

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