What's good for your finances can be good for your health too, online mortgage broker John Charcol believes.
The broker is advising customers giving up the habit for National No Smoking Day on Wednesday March 14th to invest the money they save in ending their mortgage term years earlier.
According to the broker's calculations, a homeowner with a 25-year mortgage of £100,000 could save over £27,000 in interest, if they put the potential £1,825 a year they save by quitting smoking 20-a-day towards repaying their mortgage eight years early.
A ten-a-day smoker could cut five years off their mortgage, meanwhile, while a 40-a-day addict could pay their £100,000 loan off 14 years earlier than planned.
Until recently, many mortgage customers may have been nervous of terminating repayments early as lenders imposed high exit fees for paying off the mortgage before the allotted term was out.
But a recent ruling from the Financial Services Authority barred lenders from hiking exit fees for existing customers, leaving customers completing mortgage repayments early without fear of unexpectedly high penalty fees.To learn more about flexible mortgages, click here.
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