Anyone who received a bonus in their pay packet this month might want to use it to pay a lump sum off their mortgages, suggests one expert.
Katie Tucker of mortgage advisors Charcol, said: "Simply overpaying an extra £50 per month [on your mortgage] will bring a £150,000 25 year repayment mortgage down from 25 years to 22 years and save you a whopping £17,415 on the cost of your mortgage over the term."
However, she added that people should always pay off their most expensive debts first. This would typically be things like credit card and personal loans, Ms Tucker said.
Research by uSwitch.com found that UK consumers are paying a total of £93 billion in interest on personal loans, credit cards, overdrafts and mortgages .
It also found that UK total personal debt stood at £1.39 trillion, of which £222 billion was owed on credit cards and personal loans .
Lump sum payments could help save on your mortgage
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Lump sum payments could help save on your mortgage
Tue, 29 Jan 2008
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