Tuesday 13th March 2007
Non-smokers may save enough money to pay off their mortgages eight years early, according to John Charcol.
The independent mortgage expert suggests that the funds not spent on cigarettes may result in a total saving of £27,000 on interest payments.
Figures were calculated based on the full term of a 25-year loan, meaning those with longer terms may potentially save more.
Meanwhile, if the average number of cigarettes smoked were doubled to 40 a day, the savings would total over £45,000, John Charcol claimed.
Katie Tucker, product manager at John Charcol, said: "Even someone with a relatively small mortgage of £100,000 will pay £27,417 less in interest."
"Coupled with savings on life assurance premiums and even some home contents insurance policies, there really is a great financial argument for not lighting up," she added.
The company advises that while mortgages with repayments on an interest-only basis typically work out cheaper in the long-term, their links with stock market performance mean the loan may not be paid off in full by the end of the term.
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