What could overpaying an extra £100 a month do to your mortgage?
Potentially, quite a lot.
This table shows how much sooner you could repay your mortgage, and roughly how much interest you could save, if you overpaid by £100 every month.
For example:
* £100k mortgage → paid off about 6 years 2 months sooner, saving around £20,900 in interest
* £200k mortgage → about 3 years 7 months sooner, saving around £24,500
* £500k mortgage → about 1 year 7 months sooner, saving around £27,400
The figures assume:
* a repayment mortgage
* 25 years remaining
* an interest rate of 5%
* the rate stays at 5% for the whole period
* you start overpaying immediately and continue every month
* no overpayment charges
Your actual saving will depend on your mortgage rate, remaining term and whether your lender limits penalty-free overpayments.
And remember, overpaying your mortgage is not automatically the best use of spare cash. Depending on your rate and circumstances, saving or investing could potentially give you a better return.
But if your priority is to clear your mortgage sooner and reduce the amount of interest you pay, even an extra £100 a month can make a meaningful difference.
For more info on overpaying your mortgage including the pros and cons click the LINK IN BIO
#mortgage #ukmoney #personalfinance #property #moneytips
Potentially, quite a lot.
This table shows how much sooner you could repay your mortgage, and roughly how much interest you could save, if you overpaid by £100 every month.
For example:
* £100k mortgage → paid off about 6 years 2 months sooner, saving around £20,900 in interest
* £200k mortgage → about 3 years 7 months sooner, saving around £24,500
* £500k mortgage → about 1 year 7 months sooner, saving around £27,400
The figures assume:
* a repayment mortgage
* 25 years remaining
* an interest rate of 5%
* the rate stays at 5% for the whole period
* you start overpaying immediately and continue every month
* no overpayment charges
Your actual saving will depend on your mortgage rate, remaining term and whether your lender limits penalty-free overpayments.
And remember, overpaying your mortgage is not automatically the best use of spare cash. Depending on your rate and circumstances, saving or investing could potentially give you a better return.
But if your priority is to clear your mortgage sooner and reduce the amount of interest you pay, even an extra £100 a month can make a meaningful difference.
For more info on overpaying your mortgage including the pros and cons click the LINK IN BIO
#mortgage #ukmoney #personalfinance #property #moneytips
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