Save thousands on your mortgage cost

The interest cost on a mortgage is quite substantial over the lifetime of the mortgage. However, one can save thousands of pounds in interest by making regular overpayments towards the mortgage. There are a number of calculators online that will tell you, how much you can save, by making these overpayments. I found a handy calculator at : http://www.whatmortgage.co.uk/calculators/fleximortgage.html

I have used this calculator to calculate the savings I would make, if I overpaid on a loan of £100,000 (Interest: 6%, Term : 25 years).

Overpayment: £50 per month
Saved Amount : £16,010.74
Mortgage Term: Reduced by 3.7 years

Overpayment: £100 per month
Saved Amount : £27039.37
Mortgage Term: Reduced by 6.4 years

Overpayment: £200 per month
Saved Amount : £41,445.73
Mortgage Term: Reduced by 10 years

Many mortgages allow overpayments - simply making small regular overpayments can shave thousands of pounds off the mortgage cost and reduce the mortgage term by a few years as demonstrated above. Given time and a little financial discipline, the mortgage beast can be slayed !!!

Wishing you all a happy , mortgage free life.

Jay