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 want to pay off your mortgage early?
If you are thinking of repaying your mortgage, do your sums.
When will you finish repaying your mortgage and what will your financial situation be like then? It's 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 get rid of that debt.
Most mortgages won’t charge you for overpaying, however, it’s 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’s a guaranteed way to pay off your mortgage sooner.
If you’re looking for expert advice regarding buying and selling, contact us today.
*Hargreaves Lansdown
