Stubbing it out 'saves lives and money'
Published On 14 March 2007
Giving up smoking could allow many individuals to save thousands of pounds on their mortgage, a new report has insisted.Coinciding with National No Smoking Day (March 14th), UK mortgage broker CharcolOnline has calculated that a person with a 25-year repayment mortgage could save more than £27,000 in interest by giving up a 20 cigarette per day habit.
This would also reduce the term of the loan by eight years, freeing up time that could be better used in preparation for retirement.
The report argues that a 20-a-day smoker could save £1,825 a year by giving up, which CharcolOnline's Katie Tucker claims should be "incentive enough".
"When you look at what overpaying by this amount can do to a mortgage, it is even more of an enticement. Even someone with a relatively small mortgage of £100,000 will pay £27,417 less in interest," she added.
The savings extend even further than this, however, as life cover will also be much cheaper for a non-smoker. A 35-year-old male non-smoker can expect to pay £9 a month for life cover of £100,000 for a 25-year term. A smoker of the same age will have to pay £17 a month, the report suggests.
"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, as well as the obvious benefit to your health," Ms Tucker added.
From July 1st this year, smokefree legislation will be applicable to the whole of the UK, allowing employees in offices, shops, factories, restaurants and pubs to work in a completely smokefree environment.
