Stop smoking and pay your mortgage off 8 years early

People who are considering giving up smoking could use the money to pay off a considerable proportion of their mortgage, it has been claimed.

They could also repay their mortgage eight years early and save considerably on interest payments, according to mortgage brokers John Charcol.

A homeowner with a 25-year mortgage could save around £27,000 in interest and cut their mortgage term by eight years if they used the money saved to overpay on their mortgage, according to the broker’s calculations.

Katie Tucker, a spokeswoman for John Charcol, commented: “When smokers look at what quitting can do to their finances it may provide that added incentive to finally stub out the habit.”

Additionally, many of the standard mortgages in todayís market allow some degree of overpayment without penalty.

She added that someone with a 20-day habit can save around £1,825 a year by giving up and the figures rise in proportion with the amount a person smokes.

National no-smoking day is on the March 14th and a nationwide smoking ban is due to come into force between April and July 2007.

© Adfero Ltd

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