Could you benefit from repaying your mortgage early?

Inspiration :   24 - 09 - 21

According to a recent report, the average homeowner will be 57 before they’re able to fully repay their mortgage, so paying off the debt early is a desirable financial goal.*

 

What is there to consider?

 

If you are thinking of repaying your mortgage it is important to crunch the numbers.

When will you finish repaying your mortgage and what will your financial situation be like then? It is important to consider your options and review them frequently.

 

Here are a few options to help you pay off your mortgage sooner:

 

1) Overpay whilst you can

Ensure you have enough money to keep you going for at least three months before paying off your mortgage, as this is a good way to judge if now is the right time to clear that debt.

Most mortgages won’t charge you for overpaying, however, it is always worth checking.

 

2) Consider remortgaging

Interest rates are at record low levels and there is more product choice for buyers than ever before. If there is a better deal on offer, it might be a good idea to remortgage whilst you can.

Remortgaging can help you reduce the size of your loan and avoid less favourable mortgage rates that will extend your mortgage term.

 

3) Reduce your mortgage term

Sticking with your current mortgage plan could leave you overpaying if your financial position has changed since you first applied for your mortgage.

If you can now afford higher repayments, you should consider reducing your term. By doing this and increasing your monthly payments, it is a guaranteed way to pay off your mortgage sooner.

 

4) Choose a trusted mortgage provider

We are committed to building relationships with industry partners so we can recommend the very best services to you. We have teamed up with L&C Mortgages, the UK’s leading fee free mortgage and protection broker.

Find out more here 

 

 

*Hargreaves Lansdown