Currently owe 203301 on our mortgage at 1.1% interest (Tracker) with 22 years left to go. House worth about 240K
Rang the bank and asked if we paid a lump sum of 50K off it and kept the repayments (833.84) the same how much would our term reduce.
They came back and said the term would be down to 16 years. They couldn't tell me the interest saved,
Based on my calcs it as follows:
266 * 833.84 = 221801
(194 * 833.84) + 50000 = 211765
Interest saved = 221801-211765 = 10036
50K currently sitting in prizebonds (reinvesting any winnings), have other savings also for rainy day.
What are peoples thoughts on paying this sum off the mortgage.
Rang the bank and asked if we paid a lump sum of 50K off it and kept the repayments (833.84) the same how much would our term reduce.
They came back and said the term would be down to 16 years. They couldn't tell me the interest saved,
Based on my calcs it as follows:
266 * 833.84 = 221801
(194 * 833.84) + 50000 = 211765
Interest saved = 221801-211765 = 10036
50K currently sitting in prizebonds (reinvesting any winnings), have other savings also for rainy day.
What are peoples thoughts on paying this sum off the mortgage.
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