Mortgage Reduction UK
February 28th, 2008 | by admin |To reduce your Mortage there are various things that you can do.
Firstly to Reduce Mortgage Payments
- Extend Mortgage Term - Longer repayment period means lower monthly payments, but higher total cost.
- Interest Only - Means you only pay interest payments and not capital repayments. Cheaper monthly repayments. But, need to find an alternative means of paying off debt.
- Remortgage to Cheaper Deal. At the end of your mortgage introductory offer, try remortgaging. As long as you don’t have high repayment charges move it to the best deal. Spend time to find most attractive deal, it can save £100s each month.
Reduce Total Cost of Mortgage
1. Make extra Lump Sum Payment. Making extra lump sum payment will reduce the total cost of your mortgage quite significantly. The earlier you pay it, the greater the cumulative impact it will be. Not only do you reduce capital payments but also compounded interest payments.
2. Making Extra Monthly repayments. If you have a flexible mortgage, you can make extra monthly payments. This extra payments will go 100% to reducing the capital rather than 90% towards interest. This is a powerful way to reduce your mortgage
3. Reduce Mortgage Term. Reducing the mortgage term will have a significant impact on reducing total cost of mortgages.
A £100,000 mortgage would cost:
- £239,508.90 over 30 years
- £212,033.76 over 25 years
- £186,071.74 over 20 years
- £161,789.09 over 15 years
