Pay off Mortgage Early

Pay off your mortgage early is not a ‘rocket science’ decision it is simple mathematics and common sense.

Example:

Mr and Mrs Bloggs take out a mortgage for £80,000 over 25 years, interest rate 6% pa variable on a repayment, capital and interest mortgage basis.

The payments are £515.44 per month.

Over 25 years:

• Monthly payment: £515.44 pm
• Total repayments: £154,632.44
• Total interest paid: £74,632.44

What goes up can go down .......................

Open your eyes to your future wealth, review your monthly budget

Mr and Mrs Bloggs look at their budget and make some savings on expenses, cars and other areas and decide that they can afford to make overpayments by an additional £515 per month.

• Total repayments: £96,141.86
• Total interest paid: £21,509.42 (an amazing 71% reduction in interest)
• Saving £53,123.02 in interest

Doubling Up Payments - Reduces Mortgage Term By A Staggering 16 Years 9 months.

I cannot afford this. Doubling up unrealistic?

Look at these facts for the £80,000 mortgage example:

• £100 per month extra payment reduces your mortgage by an amazing 7 years and 5 months!
• £100 per month saved in a general savings or ISA offset account reduces the mortgage term by 4 years and 1 month
• £2,000 average balance in your current account if offset against your mortgage reduces the mortgage term by 1 year

Remember to pay off your mortgage early, the more you pay the more you offset, the more interest you save and the faster your mortgage reduces. Smash that mortgage!