Shopping around for 2nd mortgage is so popular these days that many people can be excused for thinking that switching lenders is the only way to save money on your home loan. But there is a much easier way that does not require phone calls computers connected to the internet or trips to your bank or building society.
Did you know for instance that making overpayments on your mortgage can slash thousands of pounds off your interest bill Additionally it will cut the length of time taken to repay your home loan so you get to own your home sooner.
Imagine say that you have a repayment mortgage with a year term and an interest rate of . Your monthly payments will be and after years you will have paid back a total of . In other words you will have paid back . for every pound borrowed.
If however you were to overpay your mortgage by just each month your total payment would be reduced to a saving of over sixteen grand in interest. Furthermore this overpayment shortens the length of the mortgage by months which means almost four extra years of bliss.
Its is worth being prudent though and ensuring that your will not be penalised by your lender for changing your standing order or making overpayment. In the main most flexible mortgage lenders will allow you to make overpayments of up to each year. But if your lender doesnt allow this you have another trick up your sleeve
Lessening the term of your mortgage from years to years would increase your payments in exactly the same way as overpaying by each month. Mind you this is a much harsher way to do it because payments are fixed. However it doesnt prevent you from increasing your term again should you need to by simply writing to your provider.
At the end of the day paying off your mortgage early is simply the best and least risky ways of saving money. By making overpayments to your mortgage of around your money would be working harder than if you had invested it into a savings account with earnings. for a basicrate taxpayer. For a higherrate taxpayer this riskfree and taxfree rate is equivalent to which is practically unbeatable
Many people forget that even though we sign up for a year mortgage term there is no earthly reason why we have to stick to this. If you have any extra cash each month using it against your mortgage can make a huge difference and it can save you thousands of pounds in interest each year.
Good luck on removing that mortgage millstone from around your neck
Keyword:
Internet Repayment Mortgage 2nd Mortgage
Did you know for instance that making overpayments on your mortgage can slash thousands of pounds off your interest bill Additionally it will cut the length of time taken to repay your home loan so you get to own your home sooner.
Imagine say that you have a repayment mortgage with a year term and an interest rate of . Your monthly payments will be and after years you will have paid back a total of . In other words you will have paid back . for every pound borrowed.
If however you were to overpay your mortgage by just each month your total payment would be reduced to a saving of over sixteen grand in interest. Furthermore this overpayment shortens the length of the mortgage by months which means almost four extra years of bliss.
Its is worth being prudent though and ensuring that your will not be penalised by your lender for changing your standing order or making overpayment. In the main most flexible mortgage lenders will allow you to make overpayments of up to each year. But if your lender doesnt allow this you have another trick up your sleeve
Lessening the term of your mortgage from years to years would increase your payments in exactly the same way as overpaying by each month. Mind you this is a much harsher way to do it because payments are fixed. However it doesnt prevent you from increasing your term again should you need to by simply writing to your provider.
At the end of the day paying off your mortgage early is simply the best and least risky ways of saving money. By making overpayments to your mortgage of around your money would be working harder than if you had invested it into a savings account with earnings. for a basicrate taxpayer. For a higherrate taxpayer this riskfree and taxfree rate is equivalent to which is practically unbeatable
Many people forget that even though we sign up for a year mortgage term there is no earthly reason why we have to stick to this. If you have any extra cash each month using it against your mortgage can make a huge difference and it can save you thousands of pounds in interest each year.
Good luck on removing that mortgage millstone from around your neck
Keyword:
Internet Repayment Mortgage 2nd Mortgage
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