Use your bonus to make overpayments on your mortgage

Wednesday, January 30, 2008

If you get a quarterly or annual bonus from work you could do a lot worse than paying off a chunk of your mortgage.

Overpayment's can reduce the term of your mortgage and save you a vast amount in interest.

If possible you should try and resist the temptation to whittle away your bonus or pay rise and save yourself thousands of pounds in interest in the future.

If you have managed to survive all year without that additional money you may be able to use the money to make regular overpayment's on your mortgage.

By paying an extra £50 per month on a £150,000 mortgage over 25 years would reduce your term by 3 years and save you £17,415 in interest.

If you would like to discuss this article or others like it, please feel free to contact Solution Mortgages on 0845 123 1260 or visit our website at http://www.solution-mortgages.co.uk/