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Well take a look at fixed rate mortgages and how they can be good 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.

Of the various types of mortgage available, the fixed rate mortgage is only one of them.
A fixed period of interest that may be a couple or several years.
If the interest rate remains static, so do your monthly payments.

Do fixed rate mortgages have any plus points?
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.

If the bank base interest rate starts to rise, yours will stay as it is.
In our lifetime we have already seen some distressing interest rate rises.
People on variable rate mortgages are much more likely to be affected by rapid rises in interest rates.

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.
In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.

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.
If a charge like this will hurt you then you must think very carefully before taking a 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 have a fixed rate but it doesn’t mean your payments have to be fixed if you can afford extra.
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 best reasons to paying a bit extra every 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.

What do you do with a mortgage overpayment calculator?
You input various figures relating to your mortgage.
You can put various amounts in as the overpayment. Feel free to 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.
Putting bigger figures in the overpayment box will show bigger savings and even more time saved.

You might be pleasantly surprised at the savings to be made.
Quick example, 25 year mortgage borrowing 100,000 at 5%.
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.
The same mortgage example but paying 100 extra every month.
You can save 20 thousand in cash. You can also shorten your mortgage by more than 6 years.

Another plus point is the years you knock off are totally payment free.
Being free of your mortgage chains a few years early is a definite reality if you can pay extra now.
You will never hear this from your lender though; it’s simply not in their interests to tell you to pay off early.

If we revisit the example where we knocked more than six years off the mortgage.
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.

We’ve looked at some of the advantages of a fixed rate mortgage.
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.