how to reduce debit interest quickly?

moneysaver_2010

how do i reduce my monthly interest quickly or quicker?
hoping to get some expert help...


here are my facts

mortgage loan £60, 000
5 year fix at 3.95 %

I pay around £730 monthly but I have found that i am paying around £190 give or take a month on interest.

How can I reduce this quickly so i am paying less interest because to date I've paid just over £1000.

I know the simple thing would be to pay more each month, but i can't really afford any more on my budget.

What are my alternatives? mortgage break to save and pay off lump sum?

when does my bank work out the interest charge? is it usually end of the month? im with hs*c



any help/advice is appreciated

InMyDreams

moneysaver_2010 wrote: »

how do i reduce my monthly interest quickly or quicker?

Overpay

moneysaver_2010 wrote: »

I know the simple thing would be to pay more each month, but i can't really afford any more on my budget.

Oh, I see.

moneysaver_2010 wrote: »

What are my alternatives? mortgage break to save and pay off lump sum?

This would only work if the interest rate on your savings (after tax) was more than your mortgage. So you'd have to be earning more than 3.95% NET AFTER TAX. And don't forget to take into account any charges for taking a mortgage break or for making any overpayments. That's if they even let you take a break which I would think would be unlikely.

moneysaver_2010 wrote: »

when does my bank work out the interest charge? is it usually end of the month? im with hs*c

Ring up and ask, but I'm sure most calculate daily now so it would make no difference. Day of the month doesn't really matter - just pay it as soon as the money is in your current account. Assuming there isn't an admin charge for changing the date you pay your mortgage.

Basically, I don't think there's really a way you can get money for nothing here. The only way to reduce what you owe (and so pay less interest) is to pay it back faster.

sheslookinhot

That sounds like too much interest. How long has your loan got to go ?
Is it repayment and interest, what is ratio ?

moneysaver_2010

sheslookinhot wrote: »

That sounds like too much interest. How long has your loan got to go ?
Is it repayment and interest, what is ratio ?

its a 7 year loan in total.

it is repayment.


been paying since december 2010