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.

There are a few different types of mortgage, the fixed rate mortgage being only one of them.
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 are the fixed rate mortgage good points?
No need to worry about fluctuating interest rates. Your rate and your payments are fixed.
You get to budget easier every month as your payments remain the same.

No matter what the average interest rate is, your rate will stay the same.
In the last few decades we have seen interest rates almost double in a few short months.
Being on a variable rate leaves you susceptible to the rapid rise of your monthly payment.

There is a situation when maybe you should think twice about a fixed rate mortgage.
If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon.
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.
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.

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.

What are the best reasons to paying a bit extra every month?
You can shave several years off your mortgage term by paying slightly more each month.
You also save a lot of money in the process, sometimes a staggering amount.

How do mortgage 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.

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.
Putting bigger figures in the overpayment box will show bigger savings and even more time saved.

You may be surprised at some of the savings you can make.
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.
The same mortgage example but paying 100 extra every month.
You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.

Another benefit is that for the last few years of the original (25 year) term, you don’t pay anything.
It’s definitely a reality for you to be free of your mortgage years before planned.
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.
A six year saving translates into about a forty grand saving in cash.
This saving is yours as you will never need to give it to your lender as you originally planned.

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

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