The simple trick could even save you £60,000 and significantly reduce how long you are paying your mortgage for
With the Bank of England holding interest rates at 5.25%, homeowners are feeling the pinch when it comes to their mortgage payments, but a money expert has explained that paying as little as £100 extra a month could save you thousands in the long run. Tom Blake, Director of Money Saving Guru, said overpaying your mortgage can help ease the financial burden overall, potentially saving you between £25,000 and £60,000 and cutting your mortgage term anywhere between 1 to 6 years.
This tip works because you end up reducing the amount of money you have to pay in interest, which can build up over the years. But by making overpayments, you can cut down the extra cash you need to pay and reduce the length of your mortgage term. The savings you can achieve will vary depending on your mortgage's interest rate, how much you can afford to overpay, and any limits set by your lender, but even small overpayments can make a big difference.For those who can afford to overpay £250 a month, the savings are even more substantial:
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
– £25 chilli earrings and a holiday-perfect £18 handbagIf you're jetting off on a sunny holiday or are just looking to treat yourself, we've rounded up our favourite fashion, beauty and homeware buys - including a holiday-perfect raffia handbag
Read more »
Hawes & Curtis launches 'perfect' designer shirt for just £25The 110th anniversary limited edition white shirt collection features the same high quality as their premium shirts, but at a more affordable price
Read more »
See your favourite West End show from just £25 in the TodayTix Spring Theatre SaleTodayTix is showcasing the best of the West End - get your theatre tickets before they sell out!
Read more »
M&S' £25 'comfy, good value' summer sandals are almost identical to BirkenstocksLooking for a pair of comfortable sandals that won't break the bank or cause blisters? M&S have released a chic pair that are a fraction of the price of Birkenstocks and are almost identical...
Read more »
Shoppers insist 'brilliant' £25 teeth whitening solution erases years of stainsThe teeth whitening solution has 'impressed' users to no end with its incredible results that has eliminated years of stains created by drinks like coffee, tea, wine as well as smoking
Read more »
Glossybox's £25 Father's Day grooming Kit full of high-end treats for dadsWith Father's Day just around the corner, you can secure a luxury treat for the Dad's in your life with the Glossybox Grooming Kit - worth over £132.
Read more »