Mortgage Overpayment vs Investing
Current mortgage balance
Remaining term
Current mortgage interest rate
Monthly overpayment planned
If invested, the rate expected per annum
| 0 | £ 200,000.00 | £ 200,000.00 |
| 1 | £ 191,783.76 | £ 185,728.45 |
| 2 | £ 183,401.67 | £ 171,168.84 |
| 3 | £ 174,850.40 | £ 156,315.35 |
| 4 | £ 166,126.53 | £ 141,162.05 |
| 5 | £ 157,226.57 | £ 125,702.89 |
| 6 | £ 148,146.97 | £ 109,931.70 |
| 7 | £ 138,884.11 | £ 93,842.18 |
| 8 | £ 129,434.28 | £ 77,427.91 |
| 9 | £ 119,793.71 | £ 60,682.32 |
| 10 | £ 109,958.56 | £ 43,598.73 |
| 11 | £ 99,924.89 | £ 26,170.32 |
| 12 | £ 89,688.69 | £ 8,390.13 |
| 13 | £ 79,245.88 | £ 0.00 |
| 14 | £ 68,592.30 | £ 0.00 |
| 15 | £ 57,723.67 | £ 0.00 |
| 16 | £ 46,635.67 | £ 0.00 |
| 17 | £ 35,323.87 | £ 0.00 |
| 18 | £ 23,783.74 | £ 0.00 |
| 19 | £ 12,010.69 | £ 0.00 |
| 20 | £ 0.00 | £ 0.00 |
| Total Interest paid | Total Interest paid | |
| £ 42,824.00 | £ 26,130.90 |
If you made an overpayment towards the loan then you will fully pay your loan in 12 years 6 months with an interest saving of £ 16,693.10
But if you invest the overpayment at 4.00 % instead of paying this towards the loan for 12 years 6 months, you will earn £ 22,102.64 in returns
So, investing the overpayment will give you an extra £ 5,409.54
But if you invest the overpayment at 4.00 % instead of paying this towards the loan for 12 years 6 months, you will earn £ 22,102.64 in returns
So, investing the overpayment will give you an extra £ 5,409.54