Save thousands by overpaying your mortgage

A HOMEOWNER could save thousands over the lifetime of their mortgage by increasing their repayments by €100 per month.

A €250,000 loan over 25 years at a rate 4.5% will cost €1,267 per month. Total interest will be €206,000, while the total cost of the loan is €456,000.

If, however, a homeowner pays an extra €100 per month, they will reduce the mortgage term by four years and the total cost of the loan will be €423,000, a saving of €33,000.