Mortgages are the single biggest loans most of us will ever take, with the average being £123,000 spread out over 25 years.
But what if we told you that you could pay off your mortgage quicker and save a huge amount in interest payments, just by making the switch from cigarettes to E-Cigarettes?
By using the extra money you save by switching from cigarettes to e cigarettes and overpaying on your mortgage you can cut years and £1000's of your mortgage!
E CIGARETTES SAVE YOU MONEY EVERYDAY
As smokers, we all know that smoking is becoming more and more expensive. An average pack of cigarettes will cost £10.40, and if you buy a more premium brand of cigarettes you could be spending over £12!
That price is set to rise. For years now it has been the UK government’s policy to raise the price of cigarettes in efforts to reduce the number of people who smoke. And that trend will only continue in years to come.
For today's blog, we are going to make some generalisations to make the maths easier. We assume that you smoke a pack a day and that each pack of cigarettes costs £10.
In a week then you will spend £70 on cigarettes, £304 a month and in a year £3,650!
That is a lot of your hard-earned money literally going up in smoke, and that's where E Cigarettes can help. You can get the same smoking sensation, similar if not better taste and the same nicotine hit from an E Cigarette at a fraction of the price (and E Cigarettes are 95% less harmful than cigarettes too)!
When we say at a fraction of the cost, we really mean it. A pack of E Cigarette refills from SMOKO comes with 5 refills and normally costs £10. Each of these refills has about 30 cigarettes worth of nicotine in it.
So by switching to e cigarettes, you would be paying £1.50 to £2 a day. This would equate to a saving of at least £8 a day, £56 a week, £243 a month and a whooping £2,920 a year!
That’s a lot of money to save each year from e cigarettes, but how does this all help with your mortgage?
MORTGAGES AND OVERPAYMENTS
When most of us pay our mortgage we just pay the required amount, which includes the interest on the original debt and some principle. To give you an example the actual costs of a mortgage we have taken a normal mortgage and broken it down for you.
Assuming you have a £130,000 mortgage over 25 years with 3% interest it will look like this:
- Monthly Payments - £616
- No. of Monthly Repayments - 300 (25 years)
- Total Amount Paid - £184,911
- Total Interest Paid - £54,911
- Percent of Interest Paid Vs. Original Mortgage - 29.7%
Of course, each mortgage is going to be different, but this example illustrates how much interest you have to pay - almost 30% of your payments just going into paying the interest!
Most mortgages allow for you to make overpayments, which is paying more than the minimum payment each month. By overpaying you are eating into the actual debt faster, which then lowers the amount of interest you have to pay.
This will have a huge impact on how much interest you pay over the lifetime of your mortgage meaning you will pay less interest and pay off your house quicker.
HOW EXACTLY VAPING CAN HELP YOU WITH YOUR MORTGAGE
So now we know how much you can save by switching from cigarettes to E Cigarettes and what a normal mortgage costs, it's time to put them together.
If you were to take all the extra money you are saving a month from switching to E Cigarettes (£243) and use it to overpay on your mortgage you will make a huge difference. To break it down:
- Monthly Payments - £859 (£616 minimum required payments + £243 you save from switching to electronic cigarettes in overpayments)
- No. of Monthly Repayments - 196 (16 years and 3 months)
- Total Amount Paid - £163,499
- Total Interest Paid - £33,499
- Percent of Interest Paid Vs. Original Mortgage - 20.48%
As you can see from this you are saving yourself £21,412 in interest payment and you would be cutting 9 years and 1 month off your mortgage. As well, you will be making a massive improvement on your health and well-being by cutting out the cigarettes.
These are rough estimates, but it really shows you what can be done by making the switch from cigarettes to E Cigarettes.
By making the switch to E-Cigarettes you are not only making a great financial choice but an excellent health choice as well for yourself and the people around you. E-Cigarettes are not only 95% less harmful than cigarettes they also only produce vapour so there in no chance of 2nd hand smoke.
So if you want to cut years of your mortgage, pay less to the banks in interest and make a great health choice (all while still getting your nicotine) then give one of our vape or e-cigarette starter kits a try!
We used a mortgage calculator to figure all this out, if you want to figure out how much you can save just click here.
Disclaimer: You can usually overpay by as much as you want once you are out of the intro period of your mortgage but this isn't universal! Check your mortgage before trying this as over-payments fees are no joke. This article is based on figures from 2019.
