Make Early Mortgage Payments to Save Money

 

Making Early Mortgage Payments

If you are able to make early mortgage payments in addition to your current payment structure it is one of the best ways to reduce interest over a long period of time. The days of writing off your debt has come to a stop. Whatever debt you have you are responsible for paying it off 100%.

There are several reasons why you should make extra payments including saving money as the biggest factor.

Here is an example if you were to pay an extra £100 per month on a £100,000 mortgage you would save a massive £27,039 which is easily the cost of a brand new vehicle and a decent one too. Some lenders have minimum limits which means you have to pay the minimum amount otherwise it is considered an interest free loan. So make sure to review your mortgage information to make sure you know exactly how much you can overpay and if there are any minimum amounts.

On the opposite end of the scale there are some mortgage lenders that only allow you to pay a maximum amount off your loan and this could mean only two extra mortgage payments per fiscal year or the life of the mortgage. So make sure you investigate and see what limits exist so that you are maximizing your investment into your mortgage.

Watch For Extra Charges

If you are part of a special promotion or deal with a fixed or discounted deal make sure to read the terms and conditions as you may actually be penalized for making an early repayment on your mortgage. This is commonly known as an early redemption penalty and can be dragged out for several years which can negatively impact your wallet. So always consult beforehand and see what the best option that is available. Sheengold is based in beautiful Kent UK and you can talk to one of our mortgage specialists on 01634-404183.

Also make sure your credit card debt or other debts are cleared first before making a mortgage repayment. It doesn’t make sense to pay down £2,000 on a 6% loan if you have a credit card you could spend £2,000 paying off the debt. As we all know reducing a debt of £2,000 @ 18.9% is better then a £2,000 debt @ 6%. You need to damage the debts that have higher interest so that you save money over the long term.

If you would like to know how much you can be approved for just fill out our application. We will give you a free no obligation quote.

 

To find out how much your new mortgage will cost click quote and apply button below to fill out our online application form or give us a call on 01634-404183.

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