British homeowners could be saving money on their mortgage by overpaying when they receive summer bonuses.
With many employees receiving a windfall around this time, overpaying on a mortgage could have valuable long-term benefits. This might be more valuable to mortgage holders than a holiday or new car.
Mortgage expert website Charcolonline advises those receiving bonus cheques to put their windfall to good use.
The average £150,000 mortgage holder could save up to £9,000 by making a single overpayment of £5,000 on their mortgage.
"By making savings now, homeowners will leave themselves with more money in the future to be able to treat themselves," advised the website's Elliot Nathan.
Mr Nathan pointed out that people think they have to overpay a huge amount to make a decent saving, but that even a "relatively small" overpayment of £5,000 could make a real difference to the average mortgage.
So for those expecting to receive a little extra cash this summer, overpaying on mortgages might be the best option.
It might not be as exotic as a foreign holiday but the long-term benefits seem sure to last longer than fond memories and a bronze tan.
Charcolonline helps people find a mortgage that fits their personal circumstances.
Put summer bonus into mortgage, homeowners advised
Tue, 16 Aug 2005
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