Repaying one’s mortgage can be a daunting prospect but rest assured, there are plenty of ways to lower payments and live mortgage free. The team at www.OnlineMortgageAdvisor.co.uk have pulled together their top tips on how to become mortgage free quickly, and pay off the debt.
They explained that for first-time buyers, being mortgage free does not have to be a pipedream, it is attainable.
Overpay on your mortgage
Overpaying a mortgage is a “sure-fire way of becoming mortgage free quickly”.
People can choose to increase their monthly direct debit by an affordable amount or pay off a lump sum, if that’s a viable option for them.
By overpaying on a mortgage, Britons can save themselves money in interest.
They can also clear their debt months, or even years earlier than expected to.
Before people start an application, experts at OnlineMortgageAdvisor explained the importance of affordability.
Britons need to make sure they can afford the payments and whether there is a limit on how much they can overpay by, along with any potential associated fees, which can vary from one lender to the next.
By swapping to another provider that offers a better deal, this might easily “save you hundreds of pounds on your repayments each month”, subsequently helping someone pay off their mortgage quicker and become mortgage free faster.
Remortgage and lower your interest rate
In a nutshell, the lower the interest rate is, the quicker people can become mortgage free.
This might seem obvious, but if someone is paying less interest overall, then they can afford to pay off more of the initial amount they borrowed from their mortgage provider, who might be willing to offer them a better rate now that they have built up some equity.
By remortgaging onto a cheaper rate and keeping the repayments at the same price, people might “potentially shave years off your mortgage and save hundreds, if not thousands of pounds, in interest,” the experts explained.
Offset your savings
By choosing an offset mortgage, people can put their savings into an account that is effectively tied to their mortgage.
Then, the balance of the amount is deducted from the mortgage when interest is calculated which means the money people save in interest can be used to pay off their mortgage quicker.
However, interest rates can be higher, and people won’t receive any interest on their savings, but they will have access to their savings if they need them, which is reassuring.