Homeowners who would like to pay off their mortgage early have been urged to consider using their annual bonus to reduce their overall mortgage commitments.
This year, people working in the City received record bonuses, while many people across the UK may also have received performance-related add-ons to their normal salary.
And internet banking service Charcolonline, which offers information on services such as mortgages and personal loans, has highlighted the potential savings that can be made by putting the windfall towards a mortgage debt.
For instance, the online banking financial services provider points out that a person with a £200,000 mortgage who pays in a bonus of £15,000 can save a total of £26,500 and cut more than three years off their mortgage.
However, Katie Tucker of Charcolonline has pointed out that some homeowners may be penalised for exceeding the agreed mortgage repayment, while others may demand an early repayment charge only for large sums of money.
"The most common amount which can be overpaid, without incurring ERCs [early repayment charges] is ten per cent per annum, but some lenders allow unlimited overpayments," she explained.
Earlier this month, recruitment agency Joslin Rowe predicted that bonuses in the financial services sector will see year-on-year growth of 12.3 per cent.
Homeowners urged to invest bonus into mortgages
Mortgage Quote Line
0845 108 0505
Homeowners urged to invest bonus into mortgages
Tue, 30 Jan 2007
Recommended links
Mortgage advisers impress buy to let investorsBuy-to-let investors need to provide quality housing, says expert
Buy-to-let investment still strong, study shows
Speed most important for buy-to-let investors, study shows
Warnings over buy-to-let mortgage investment,
Study explores why buy to let mortgages preferred to other investments
Tenant demand good news for buy-to-let investors, state experts
Buy to let investors opt for online mortgage applications
Buy-to-let mortgage investment on the up, survey shows
University towns good for buy-to-let investment, says expert
Buy-to-let investment still strong, expert claims
Buy-to-let market only for long-term mortgage investors, says expert
New mortgage products for the buy-to-let mortgage investors
Buy-to-let investors given insight into tenant preferences
Buy-to-let investors remortgage to extend portfolios, says expert
Britons seek foreign mortgages as investment, expert claims
Buy-to-let mortgage investors will survive rate rise, financing analyst claims
Buy-to-let investors reveal dependence on mortgage brokers
Buy-to-let investors boosting portfolios, expert claims
Mortgage borrowers investing back
Buy-to-let investors snap up cheaper properties
Parents and children investing in joint mortgages
Buy-to-let investments still going strong, study shows
Fixed-rate mortgages increasing among buy-to-let investors
Your comprehensive online UK mortgage portal
Compare mortgage deals from top providers
Free mortgage enquiry form
Read out money saving tips for homeowners
Mortgage comparison tables
Morse boosts mortgage costs, bank claims
Mortgage increase in last year
| mortgages news |
|---|
| Yorkshire Building Society makes mortgage more accessible - Thu, 02 Sep 2010 |
| Lloyds TSB launches new fixed-rate mortgage - Thu, 02 Sep 2010 |
| Skipton launches new mortgage range - Wed, 01 Sep 2010 |
| More News |
Mortgage Rates by Lender 
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Equity Release
Switching Mortgages
Home Reversion Plans
Commercial Mortgages Arrears & CCJs?
Remortgages- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage