We’ll have a look at what benefits there are to a fixed rate mortgage for you. We will also look into how a mortgage overpayment calculator might save you lots of cash. Security comes with the fixed rate mortgage, whereas huge savings can come with the overpayment calculator.

A fixed rate mortgage is one of the various types available. Usually for a period of several years, you get a fixed rate of interest. The interest rate you pay is locked; therefore your monthly payments are also locked.

What, if any, are the up sides to fixed rate mortgages? You benefit by not having the yo-yo effect on your monthly payments. They stay the same every month. You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

If the bank base interest rate starts to rise, yours will stay as it is. In the not too distant past there have been some real scary rate rises. People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

A fixed rate mortgage could be a mistake for you under certain circumstances. Moving home in the next year or so. Having a planned or even unplanned child can be reasons to avoid fixed rate mortgages. Any sort of situation like this can cause unexpected charges by way of redemption penalties.

Fixed rate mortgages nearly always come bundled with a redemption penalty. At a time when you least need it, you could get hit with a redemption penalty. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch. It’s not set in stone that you have to pay the same minimum amount every month. You lender will not tell you it’s possible to pay extra as they prefer you just pay the minimum.

Are there any advantages to paying a bit extra each month? If you consistently pay extra in the early years of your agreement you can knock several years off the length. You can save a shedload of cash as well as knock a few years off.

What do you do with a mortgage overpayment calculator? You can enter all the relevant figures from your particular deal. You can then play around by changing the figure you can afford to overpay.

The calculator tells you how many years you will knock off. It will tell you what sort of cash lump sum you can expect to save as well. If you play around with the overpayment figure you can see that the more you overpay the more you save, in cash and years.

There are astonishing amounts of savings to be had. If you borrowed a hundred thousand at five percent over twenty five years. Making an overpayment of 50 every month will save you 12,000 and knock over 3 years off.

The last example was an overpayment of 50 every month, but what happens if you pay 100 extra. Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. This saves you more than 20,000 and knocks a respectable 6 years off the term.

Another benefit is that for the last few years of the original (25 year) term, you don’t pay anything. Being free of your mortgage chains a few years early is a definite reality if you can pay extra now. Lenders will not tell you this, they like to keep this a secret.

If we revisit the example where we knocked more than six years off the mortgage. You pay nothing more for the last 6 years of the term, which equates to about another 40 grand saved. This saving is yours as you will never need to give it to your lender as you originally planned.

We’ve looked at some of the advantages of a fixed rate mortgage. You get a good night’s sleep and regular level payments. We also had a look at a mortgage overpayment calculator and the potential savings that can be had.

We’ll discover what the fixed rate mortgage is, and its benefits. Then prepare to be amazed at the savings made with a mortgage overpayment calculator. You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

Of the various types of mortgage available, the fixed rate is only one of them. The interest rate is fixed, usually for a number of years. If the interest rate remains static, so do your monthly payments.

Are there any benefits to a fixed rate mortgage? A fixed rate of interest means a fixed monthly mortgage payment. You can benefit by knowing your monthly payment is fixed which allows you to budget more effectively.

It doesn’t matter how much interest rates rise, your payments are fixed. In our recent history there have been some frightening short term interest rate rises. If the rates rose drastically over a short term those on variable mortgages could struggle to meet payments.

There is a situation when maybe you should think twice about a fixed rate mortgage. You may decide you need to move house, or even have an unexpected child and simply need more room. Either of these events will cause you to trigger an unwanted redemption penalty.

Nearly all fixed rate mortgages have a redemption penalty attached. You can get hit with a nasty charge when you are least expecting it. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.

One thing to consider while having the mortgage is to pay a bit extra every month if you can afford it. It’s not set in stone that you have to pay the same minimum amount every month. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.

If you do pay extra each month, are there any benefits to this? Topping up your monthly minimum payment means you can knock a few years of the length of your mortgage. Not only do you save years, you can also save thousands and thousands of your hard earned money.

What does a mortgage overpayment calculator do? You can enter all the relevant figures from your particular deal. You can enter a figure that you may think about paying as an extra payment each month.

You get a resulting figure out of the calculator in years you can shave off. It also tells you what sort of financial saving you can expect to make. Playing around with the actual overpayment figure can reveal that the more you can pay, the faster you finish your mortgage.

You may be surprised at some of the savings you can make. If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate. Just by paying an extra 50 every month could see you knock over 3 years off and save over 12 grand.

Now an example of 100 extra instead of 50 extra. The same mortgage example but paying 100 extra every month. This saves you more than 20,000 and knocks a respectable 6 years off the term.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage. You could be free of the shackles of your mortgage early by paying a little more now. You won’t hear this info from any lenders though. You need to discover info like this for yourself.

If we look at the example where we paid 100 extra and knocked over 6 years off the length. You pay nothing more for the last 6 years of the term, which equates to about another 40 grand saved. You don’t pay this money to your lender so you get to keep it, either save it or spend it.

To recap we had a look at what benefit a fixed rate mortgage has for you. You get a good night’s sleep and regular level payments. Also consider the huge potential in making a little overpayment every month. Even small amounts will add up.

We’ll discover what the fixed rate mortgage is, and its benefits. Then prepare to be amazed at the savings made with a mortgage overpayment calculator. The fixed rate gives you security for a while & the overpayment calculator might give you a pleasant surprise.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. A fixed period of interest that may be a couple or several years. If the interest rate remains static, so do your monthly payments.

Are there any benefits to a fixed rate mortgage? Your payment is fixed because your particular interest rate is fixed. You can benefit by knowing your monthly payment is fixed which allows you to budget more effectively.

If the bank base interest rate starts to rise, yours will stay as it is. In our recent history there have been some frightening short term interest rate rises. A rapid rise over a year or so could really see payments rise for those on standard variable mortgages.

Under certain circumstances, a fixed rate mortgage could be a mistake. You may decide you need to move house, or even have an unexpected child and simply need more room. These types of situations could invoke a nasty redemption penalty on your fixed rate mortgage.

A redemption penalty is a charge that almost always comes with a fixed rate deal. These charges can be pretty steep, and come at a time when you don’t need the extra stress. There is never a good time to be hit with extra charges so think carefully before taking the fixed rate mortgage.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch. You may not realise but you can pay any amount over the minimum monthly payment. You lender will prefer you make the minimum payment and will never tell you it’s possible to pay extra.

What are the up sides to paying extra each and every month? If you consistently pay extra in the early years of your agreement you can knock several years off the length. You can save a shedload of cash as well as knock a few years off.

How do you use a mortgage overpayment calculator? You enter your mortgage details. The amount borrowed, the length, the interest rate etc. You can then play around by changing the figure you can afford to overpay.

You get a resulting figure out of the calculator in years you can shave off. You get to see how much money you could possibly save. Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You might be pleasantly surprised at the savings to be made. If you borrowed a hundred thousand at five percent over twenty five years. By paying an extra fifty each month could save you over 3 years and 12 thousand.

Now an example of 100 extra instead of 50 extra. Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. This saves you more than 20,000 and knocks a respectable 6 years off the term.

An extra benefit is the years you save are free from any payment whatsoever. By paying a little extra now, you could easily be mortgage free well before you ever expected. You won’t hear this info from any lenders though. You need to discover info like this for yourself.

In the example where we paid an extra 100 every month and shortened the mortgage by six years. This shortening of the mortgage by six years saves you another 40,000 or more. This saving is yours as you will never need to give it to your lender as you originally planned.

We’ve looked at some of the advantages of a fixed rate mortgage. Regular payments and a good night sleep. We also looked into the future and saw some big savings if you can make a little overpayment now.

Let’s find out just what a fixed rate mortgage is, and how it may benefit you. We’ll then look at using a mortgage overpayment calculator. From definite security with the fixed rate mortgage to potential cash saved with the overpayment calculator.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. The interest rate is fixed, usually for a number of years. Locked in interest rates mean locked in monthly payments.

What are the fixed rate mortgage good points? A fixed rate of interest means a fixed monthly mortgage payment. You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

If the bank base interest rate starts to rise, yours will stay as it is. In our recent history there have been some frightening short term interest rate rises. People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

There are a few situations when a fixed rate mortgage may be a bad decision. You may decide you need to move house, or even have an unexpected child and simply need more room. In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.

Most fixed rate mortgages come tied to a nasty redemption penalty. These redemption penalties can hit you hard just when you don’t need it. There is never a good time to be hit with extra charges so think carefully before taking the fixed rate mortgage.

It’s worth thinking about paying a bit extra each month in addition to whatever you normally pay. You don’t have to make the same payment month after month for 25 years. You lender will prefer you make the minimum payment and will never tell you it’s possible to pay extra.

Are there any advantages to paying a bit extra each month? If you consistently pay extra in the early years of your agreement you can knock several years off the length. You also save a lot of money in the process, sometimes a staggering amount.

How do overpayment calculators work? It uses figures from your mortgage. Amount, interest rate, length of term etc. You can enter a figure that you may think about paying as an extra payment each month.

You get to see what sort of length in years you can knock off. It will tell you what sort of cash lump sum you can expect to save as well. Putting bigger figures in the overpayment box will show bigger savings and even more time saved.

You may be amazed by how much you could save. As an example, borrow 100,000 at 5% over 25 years. If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though? Using the same example mortgage from earlier we now pay 100 extra. You can save 20 thousand in cash. You can also shorten your mortgage by more than 6 years.

An extra benefit is the years you save are free from any payment whatsoever. By paying a little extra now, you could easily be mortgage free well before you ever expected. You never get info like this from your lender. This sort of stuff is kept quiet by the industry.

If we go back to the extra 100 each month where we managed to shave six years off. You pay nothing more for the last 6 years of the term, which equates to about another 40 grand saved. You don’t pay this money to your lender so you get to keep it, either save it or spend it.

In this article we’ve looked at the potential of fixed rate mortgages. Regular payments and a good night sleep. We also looked at potential savings by paying extra each month. Every little helps.

Well take a look at fixed rate mortgages and how they can be good for you. Then prepare to be amazed at the savings made with a mortgage overpayment calculator. You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

There are a few different types of mortgage, the fixed rate being only one of them. You get your interest rate locked for the period of the deal, usually a few years. Locked in interest rates mean locked in monthly payments.

What are the fixed rate mortgage good points? No need to worry about fluctuating interest rates. Your rate and your payments are fixed. You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

Your payment is locked so it really doesn’t matter what the general rates are doing. In the last few decades we have seen interest rates almost double in a few short months. You may struggle to meet your payments if you have a variable mortgage and rates rise suddenly.

There can be certain circumstances when a fixed rate mortgage may not be right for you. You may decide you need to move house, or even have an unexpected child and simply need more room. Any sort of situation like this can cause unexpected charges by way of redemption penalties.

A redemption penalty is a charge that almost always comes with a fixed rate deal. These charges can be pretty steep, and come at a time when you don’t need the extra stress. If a charge like this will hurt you then you must think very carefully before taking a fixed rate mortgage.

It’s worth thinking about paying a bit extra each month in addition to whatever you normally pay. You may have a fixed rate but it doesn’t mean your payments have to be fixed if you can afford extra. You lender will prefer you make the minimum payment and will never tell you it’s possible to pay extra.

What are the up sides to paying extra each and every month? Topping up your monthly minimum payment means you can knock a few years of the length of your mortgage. You also save a lot of money in the process, sometimes a staggering amount.

What does a mortgage overpayment calculator do? You can enter all the relevant figures from your particular deal. You can put various amounts in as the overpayment. Feel free to play around with this figure.

The calculator will show you how many years you can expect to shorten your mortgage by. You get to see how much money you could possibly save. Playing around with the actual overpayment figure can reveal that the more you can pay, the faster you finish your mortgage.

There are astonishing amounts of savings to be had. If you had a 25 year mortgage and borrowed 100 grand at 5% interest. Making an overpayment of 50 every month will save you 12,000 and knock over 3 years off.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though? Paying 100 extra every month using the same example mortgage. You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

Another plus point is the years you knock off are totally payment free. It’s definitely a reality for you to be free of your mortgage years before planned. Of course your lender will never tell you this, you have to discover this on your own.

If we look at the example where we paid 100 extra and knocked over 6 years off the length. We could save a further 40 thousand by not having to pay your lender every month. You don’t pay this money to your lender so you get to keep it, either save it or spend it.

To recap we had a look at what benefit a fixed rate mortgage has for you. Every month you pay the same so you get to sleep easy at night knowing this. We also looked at potential savings by paying extra each month. Every little helps.

Let’s find out just what a fixed rate mortgage is, and how it may benefit you. We’ll then look at using a mortgage overpayment calculator. Security comes with the fixed rate mortgage, whereas huge savings can come with the overpayment calculator.

A fixed rate mortgage is one of the various types available. You get a fixed interest period for several years. If the interest rate remains static, so do your monthly payments.

What, if any, are the up sides to fixed rate mortgages? No need to worry about fluctuating interest rates. Your rate and your payments are fixed. You can estimate your outgoings easier knowing your monthly payment is fixed.

It doesn’t matter how much interest rates rise, your payments are fixed. In the last few decades we have seen interest rates almost double in a few short months. People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

There are a few situations when a fixed rate mortgage may be a bad decision. If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon. Any situation which sees you changing mortgage can invoke a horrid redemption penalty on you.

Fixed rate mortgages usually come with charges called redemption penalties. When you can least afford it you could have a charge slapped on you. If a charge like this will hurt you then you must think very carefully before taking a fixed rate mortgage.

A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You may not realise but you can pay any amount over the minimum monthly payment. You lender will not tell you it’s possible to pay extra as they prefer you just pay the minimum.

What benefit does paying a bit extra each month have on you and your mortgage? You can easily shave years of your mortgage. Be debt free much earlier. Not only do you save years, you can also save thousands and thousands of your hard earned money.

What do you do with a mortgage overpayment calculator? Enter all the figures that relate to your mortgage. You also enter a figure that you want to overpay. You can play around with this figure.

You get to see what sort of length in years you can knock off. It also gives you a figure in cash that you can expect to save. Playing around with the actual overpayment figure can reveal that the more you can pay, the faster you finish your mortgage.

Some of the savings can be staggering. If you borrowed a hundred thousand at five percent over twenty five years. If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

If you can afford to pay 100 extra instead of 50 what would happen? Paying 100 extra every month using the same example mortgage. This saves you more than 20,000 and knocks a respectable 6 years off the term.

Another benefit is that for the last few years of the original (25 year) term, you don’t pay anything. Being mortgage free a few years early could easily be achieved by paying a bit extra now. Of course your lender will never tell you this, you have to discover this on your own.

In the example where we paid an extra 100 every month and shortened the mortgage by six years. We could save a further 40 thousand by not having to pay your lender every month. This is money you can spend or save as it’s not going to your lender every month.

In this article we’ve looked at the potential of fixed rate mortgages. You get a good night’s sleep and regular level payments. We also looked at potential savings by paying extra each month. Every little helps.

We’ll discover what the fixed rate mortgage is, and its benefits. We will also look into how a mortgage overpayment calculator might save you lots of cash. You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

A fixed rate mortgage is one of the various types available. The interest rate is fixed, usually for a number of years. If the interest rate remains static, so do your monthly payments.

What, if any, are the up sides to fixed rate mortgages? A fixed rate of interest means a fixed monthly mortgage payment. It’s a lot easier to plan financially knowing your payment will be the same.

If the bank base interest rate starts to rise, yours will stay as it is. There have been some alarming short term interest rate rises in our recent history. People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

A fixed rate mortgage could be a mistake for you under certain circumstances. If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage. Any sort of situation like this can cause unexpected charges by way of redemption penalties.

A redemption penalty is a charge that almost always comes with a fixed rate deal. You can get hit with a nasty charge when you are least expecting it. You must think twice before agreeing to a fixed rate deal if a charge like this will badly affect you.

During the term of your mortgage it’s worth considering paying a bit extra each month if your budget will stretch. You don’t have to make the same payment month after month for 25 years. You lender will not tell you it’s possible to pay extra as they prefer you just pay the minimum.

What benefit does paying a bit extra each month have on you and your mortgage? You can easily shave years of your mortgage. Be debt free much earlier. You also save a lot of money in the process, sometimes a staggering amount.

In what way does a mortgage overpayment calculator work? Enter all the figures that relate to your mortgage. You then enter any extra amount you can afford to pay. Or enter various value for fun.

The calculator will then tell you how many years you might reduce your mortgage by. It will tell you what sort of cash lump sum you can expect to save as well. Both the years and cash saved obviously increase if you put in a higher overpayment figure.

There are astonishing amounts of savings to be had. If you borrowed a hundred thousand at five percent over twenty five years. If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

If you can afford to pay 100 extra instead of 50 what would happen? The same mortgage example but paying 100 extra every month. In this new example the time saved is over six years and the financial saving is more than twenty thousand.

An extra benefit is the years you save are free from any payment whatsoever. Being free of your mortgage chains a few years early is a definite reality if you can pay extra now. Of course your lender will never tell you this, you have to discover this on your own.

If we revisit the example where we knocked more than six years off the mortgage. This shortening of the mortgage by six years saves you another 40,000 or more. This is 40 grand in your pocket and not your lenders. Overpaying is difficult, make no mistake, but the rewards can be amazing.

In conclusion we listed a few benefits of a fixed rate mortgage. Regular payments and a good night sleep. We also had a look at the savings to be made by paying a bit extra every month. It all adds up.

Well take a look at fixed rate mortgages and how they can be good for you. We’ll then look at using a mortgage overpayment calculator. Security comes with the fixed rate mortgage, whereas huge savings can come with the overpayment calculator.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. A fixed period of interest that may be a couple or several years. If the interest rate remains static, so do your monthly payments.

What are the advantages of a fixed rate mortgage? Your payment is fixed because your particular interest rate is fixed. You can estimate your outgoings easier knowing your monthly payment is fixed.

It doesn’t matter how much interest rates rise, your payments are fixed. In our lifetime we have already seen some distressing interest rate rises. You may struggle to meet your payments if you have a variable mortgage and rates rise suddenly.

A fixed rate mortgage could be a mistake for you under certain circumstances. The arrival of a new child could mean you need a bigger home and need to move. These are reasons to avoid fixed rate mortgages. Any sort of situation like this can cause unexpected charges by way of redemption penalties.

Nearly all fixed rate mortgages have a redemption penalty attached. You can get hit with a nasty charge when you are least expecting it. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.

A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You may not realise but you can pay any amount over the minimum monthly payment. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.

Are there any advantages to paying a bit extra each month? You can easily shave years of your mortgage. Be debt free much earlier. Not only do you save years, you can also save thousands and thousands of your hard earned money.

How do overpayment calculators work? Enter all the figures that relate to your mortgage. You also enter a figure that you want to overpay. You can play around with this figure.

The calculator will then tell you how many years you might reduce your mortgage by. It will tell you what sort of cash lump sum you can expect to save as well. Both the years and cash saved obviously increase if you put in a higher overpayment figure.

You might be pleasantly surprised at the savings to be made. Quick example, 25 year mortgage borrowing 100,000 at 5%. Just by paying an extra 50 every month could see you knock over 3 years off and save over 12 grand.

Nice savings on a 50 extra payment. But what happens if you pay an extra 100 though? We’ll use the same mortgage example figures but pay 100 extra. You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

Another plus point is the years you knock off are totally payment free. By paying a little extra now, you could easily be mortgage free well before you ever expected. Lenders will not tell you this, they like to keep this a secret.

If we revisit the example where we knocked more than six years off the mortgage. This shortening of the mortgage by six years saves you another 40,000 or more. This is money you can spend or save as it’s not going to your lender every month.

In conclusion we listed a few benefits of a fixed rate mortgage. Every month you pay the same so you get to sleep easy at night knowing this. Also consider the huge potential in making a little overpayment every month. Even small amounts will add up.

We’ll have a look at what benefits there are to a fixed rate mortgage for you. We will also look into how a mortgage overpayment calculator might save you lots of cash. You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

Fixed rate mortgages are one of a few different types of mortgage available. The interest rate is fixed, usually for a number of years. Locked in interest rates mean locked in monthly payments.

Are there any benefits to a fixed rate mortgage? Because your payments stay the same you don’t get ups and downs in your monthly payments. You can plan your monthly spending easier knowing your mortgage won’t go up unexpectedly.

No matter what the average interest rate is, your rate will stay the same. There have been some alarming short term interest rate rises in our recent history. A rapid rise over a year or so could really see payments rise for those on standard variable mortgages.

There is a situation when maybe you should think twice about a fixed rate mortgage. You may decide you need to move house, or even have an unexpected child and simply need more room. Any sort of situation like this can cause unexpected charges by way of redemption penalties.

Nearly all fixed rate mortgages have a redemption penalty attached. At a time when you least need it, you could get hit with a redemption penalty. Think hard before you take a fixed rate mortgage as these charges can really disrupt your plans.

A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You don’t have to make the same payment month after month for 25 years. You lender will prefer you make the minimum payment and will never tell you it’s possible to pay extra.

If you do pay extra each month, are there any benefits to this? You can easily shave years of your mortgage. Be debt free much earlier. You also save a lot of money in the process, sometimes a staggering amount.

What do you do with a mortgage overpayment calculator? You enter your mortgage details. The amount borrowed, the length, the interest rate etc. You also enter a figure that you want to overpay. You can play around with this figure.

The calculator will show you how many years you can expect to shorten your mortgage by. You get to see how much money you could possibly save. Putting bigger figures in the overpayment box will show bigger savings and even more time saved.

There are astonishing amounts of savings to be had. Quick example, 25 year mortgage borrowing 100,000 at 5%. You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.

If you can afford to pay 100 extra instead of 50 what would happen? We’ll use the same mortgage example figures but pay 100 extra. In this new example the time saved is over six years and the financial saving is more than twenty thousand.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage. Being mortgage free a few years early could easily be achieved by paying a bit extra now. You never get info like this from your lender. This sort of stuff is kept quiet by the industry.

In the example where we paid an extra 100 every month and shortened the mortgage by six years. This shortening of the mortgage by six years saves you another 40,000 or more. You can do what you like with this extra as it never needs to be paid to your lender.

We’ve looked at some of the advantages of a fixed rate mortgage. Not only do you get set monthly payments, you get to sleep easy at night because of it. We also looked into the future and saw some big savings if you can make a little overpayment now.

Let’s find out just what a fixed rate mortgage is, and how it may benefit you. We will also look into how a mortgage overpayment calculator might save you lots of cash. You get security from the fixed rate mortgage & you may get a nice surprise from the overpayment calculator.

A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. The interest rate is fixed, usually for a number of years. The interest rate you pay is locked; therefore your monthly payments are also locked.

Are there any benefits to a fixed rate mortgage? Your payment is fixed because your particular interest rate is fixed. You get to budget easier every month as your payments remain the same.

If the bank base interest rate starts to rise, yours will stay as it is. In the last few decades we have seen interest rates almost double in a few short months. A rapid rise over a year or so could really see payments rise for those on standard variable mortgages.

There are a few situations when a fixed rate mortgage may be a bad decision. If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage. In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.

Fixed rate mortgages usually come with charges called redemption penalties. You can get hit with a nasty charge when you are least expecting it. If a charge like this will hurt you then you must think very carefully before taking a fixed rate mortgage.

You might like to think about paying a small extra overpayment each month as you go through the length of your mortgage. You are not tied to make the same payments for the duration of the mortgage, usually 25 years. It’s not often, if at all, that a lender will tell you it’s possible to pay more than your normal minimum monthly payment.

What are the up sides to paying extra each and every month? The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal. You can save a shedload of cash as well as knock a few years off.

How do overpayment calculators work? Enter all the figures that relate to your mortgage. You can then play around by changing the figure you can afford to overpay.

The calculator will show you how many years you can expect to shorten your mortgage by. It also tells you what sort of financial saving you can expect to make. The figures in years and cash saved will increase the more you overpay each month.

You may be surprised at some of the savings you can make. If you had a 25 year mortgage and borrowed 100 grand at 5% interest. You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.

If you can afford to pay 100 extra instead of 50 what would happen? Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. In this new example the time saved is over six years and the financial saving is more than twenty thousand.

An extra advantage is you won’t have any payments to make during the last few years of the mortgage. You could be free of the shackles of your mortgage early by paying a little more now. Lenders will not tell you this, they like to keep this a secret.

In our example where we saved six years off the length with a hundred a month overpayment. We could save a further 40 thousand by not having to pay your lender every month. This is money you can spend or save as it’s not going to your lender every month.

In conclusion we listed a few benefits of a fixed rate mortgage. You get to sleep easy in the knowledge your payment will stay the same month after month. We also had a look at the savings to be made by paying a bit extra every month. It all adds up.