If I put a 拢1000 into my mortgage account at 6.6% how much interest will I save in a year?

Should I overpay 拢1000? Is it a good investment?

It depends how many years you still have left on your mortgage. The longer the time left the more you will save. If you can afford to use this 拢1000 definitely do it! I did the same a few years ago but kept my repayments the same, so I am shortening the length of my mortgage by about four months. This would be 拢2400 less in payments so effectively I save 拢1400 overall.....if you see what I mean?

well generally dumping as much money as you can into your mortgage is a good investment. Unless you can find an alternative investment that can yield a higher return.

It depends on your attitude towards risk. If you think are fine with higher levels of risk then you can expect higher returns. Things like stock markets etc yield a higher return but is going to result in a higher risk factor i.e more chance of you losing your money.

My suggestion dump it into your mortgage. I assume that property prices are stable in the UK and the capital gains on the property will also yield a nice rate. So yup dump as much as u can.

to directly answer your qustion you will save exactly 66 pounds in interest for a year, if calculated using a simple interest method.

Good luck mate

1000 pounds at 6.6 per cent will give you 66 pounds per year interest, the more investment you put in the better the output from the interest, I would probably consider putting more money to somthing like that.

May I make a suggestion, have you ever thought of PREMIUM bonds or Mini cash Isa's?!.

Premium bonds are like a lottery but they cost nothing because you can put money in and retract it out at any time, the only bad thing is you gain no intrest on the amount put in, they do the lottery once to twice a month and if you win a cheque is posted through your door - the maximuim prize is normally about 1 million every time they do it.

Or your bank will have cash isa's which are high interest accounts, you can place a minimuim deposit of 10 pounds or a maximuim yearly allowance of 3000 pounds, but again the interest would be pretty much the same as your mortgage account if not less!

I have given you some websites to look at if your interested in Mini Cahs isa'a or Premium bonds.

Hope that I have been some help.

Scottie

It is a good investment if you ask me. Where else can you find an investment that can pay you 6.6% returns guaranteed year after year?

Making a 1 time payment of $1,000 will save you 6.6% compound interest every year. In 10 years, you'll save a total of about $900. And this is only making an extra payment of $1000 in the first year. If you pay extra $1000 every year, you'll save even more.