Overpaying the Mortgage Can Save Brits Thousands of Pounds

First Direct, one of the leading UK lenders, recommends Brits holding a mortgage loan to pay overpay it rather than put the money into the savings account.

According to estimates of First Direct specialists, Brits, who do so, will be able to save thousands of pounds. For example, a property owner with a 100,000 pounds mortgage who puts off 300 pounds a month into a savings account, will overpay the mortgage by almost 43,000 in 25 years. However, if he spent the same 300 pounds overpaying the mortgage monthly, he could have paid the lender back in 12 years and overpaid only 24,000 pounds on his 100,000 pounds mortgage.

Commenting on the new figures, Mr. Tolchard of First Direct, said: "However, that is not to say that we shouldn't save, it is always advisable to have a sum set aside for a rainy day.

"An offset mortgage offers the best of both worlds; offering easy access to your savings while still helping you to reduce the overall interest you pay and ultimately, the term of the loan."

You can learn more about First Direct mortgages on the bank's website.