Extra repayments ‘can reduce loan costs’

Paying off a home loan early can help consumers save money in the long-run, it has been revealed.

Halifax spokesperson Paul Fincham suggested that making more than the minimum monthly payments could lead to "significant savings".

Mr Fincham claimed that "a small amount [of additional repayments] over the years will make a big difference and save you quite a bit in helping to reduce initial capital and paying off the interest."

However he advised that borrowers should check with their loan lender to see if paying off a mortgage early holds any charges or fees.

Last month, Shane Craig managing director of PaymentCare.co.uk, recommended that personal loan borrowers should take out monthly payment protection insurance on their loan ahead of a single-term policy to avoid unnecessary charges should they pay back credit ahead of schedule.

Interfinancial providing you with breaking personal loan news.