With interest rates being so low, some might say there is little point in keeping your savings in the bank, so you could utilise a mortgage overpayment calculator to work out how you can better use your money.
A lot of people are already doing this, with the British Bankers` Association (BBA) indicating that in February 2013, mortgage repayments outstripped new loans by £982 million, meaning that more homeowners were choosing to pay back their home loans on top of the £7.8 billion lent to new buyers.
Whilst this is right for some people who may have savings that aren`t doing anything for them in the bank, it`s wise to check out a mortgage overpayment calculator to see whether you can benefit by paying back more on your mortgage, be it a one-off or a regular thing.
It may seem obvious that paying back your mortgage earlier will save you interest payments, but depending on your deal, you may need to pay a charge for overpayment and this could cancel out any benefit you get from shortening your overall mortgage term.
While it may appeal to pay off your mortgage more quickly, you may in fact have more expensive debts that you would be better off repaying first, so you should compare the results you get on the mortgage overpayment calculator with the ones you get from completing our debt consolidation calculator or our mortgage repayment calculator.
Once you have got an impression about whether mortgage overpayment may be an option for you, contact our finance experts to discuss matters further ?call them from a landline on 0800 298 3000, from a mobile on 0333 003 1505 or enquire online at firstchoicefinance.co.uk.
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