UK direct bank Egg has launched a Saver Mortgage Calculator, an online tool that allows customers to figure out how much they could save if they linked their liquid savings and their mortgage.
The new interactive calculator, which is available from the bank's Web site, uses data on the size and lifetime of the mortgage, the interest rate payable, and total consumer savings to compute how much consumers could save over the life of a mortgage and how much sooner they could pay it off. The calculator also takes into account the flexibility of a mortgage so customers can also see how taking a payment break, making regular monthly overpayments or paying off lump sums will effect their mortgage term.
Trevor Field, head of lending at Egg, says the new Saver Mortgage Calculator could potentially cut years of a customer's mortgage. "We know that all homeowners would like to pay their mortgage off earlier if they could. This calculator makes it easy for customers to see just how effectively the Saver Mortgage could reduce their mortgage term and just how much money they could save."