UK mortgage holders could see significant savings and wipe years off their mortgage term by making regular overpayments. New research by comparethemarket.com finds that UK mortgage holders could save over £14bn over the next two decades by regularly overpaying.
Overpaying each month by as little as £59 – or around 10% of an average monthly payment – means mortgage holders could reduce their mortgage term by approximately one year and four months and possibly save £1,842 on interest alone. With nearly eight million mortgage holders in the UK, this equates to around £14.3 billion nationwide. For First Time Buyers the potential savings are even greater: mortgage holders between 25 and 34 years old could reduce their mortgage term by approximately 2 years and 8 months and save roughly £6,553 on interest by overpaying by 10%.
We’ve created these four scenarios to show you what we mean.
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