How to pay off your mortgage faster
January 04, 2018
Paying off your mortgage faster
For many of us, our mortgage is our biggest financial commitment. Reducing the amount you pay each month or your overall debt, could make a big difference to your finances and help you pay off your mortgage faster, and we have compiled a few handy tips to help you do just that!
Most of the best mortgage deals only last for a short time, so when your current deal is due to expire, speak to your current lender to see what they are prepared to offer you. But, make sure you also look at what else is on offer, or you could end up paying a lot more than you need to!
Get the best deal for you
Ensuring you pay the lowest interest rate possible is a great way to clear your mortgage debt quicker, without having to increase your repayments!
As expert mortgage advisers, we can help you compare thousands of exclusive deals from the UK’s leading mortgage lenders, to ensure you get the right product for your needs.
Reduce your term
When calculating your monthly repayments, most mortgage lenders use the standard repayment term of 25 years. But, if you find that you can afford to pay more, then increasing your payments is certainly worthwhile, as the shorter your term, the cheaper your mortgage will be overall!
Increasing your monthly payments, even just slightly, will help you to reduce both your mortgage term and rate of interest, with most mortgage lenders allowing you to make overpayments up to 10% of the outstanding loan value.
If you want to make overpayments or pay a lump sum off your mortgage, which will take you over this threshold, then remortgaging could be the best option. Your lender may charge you an exit fee for repaying your mortgage early. But, we can help you work out whether a new mortgage deal would be the best option for you.
Make your savings go further
If you’re a keen saver, then you can use your savings to reduce your mortgage. Offset mortgage deals deduct your total savings from your mortgage debt, and only charge interest on the remaining balance. You won’t earn interest on your savings. But, you’ll pay less interest and clear your mortgage faster, without having to increase your monthly repayments!
Speak to a professional
As expert mortgage advisers, we ensure you get the mortgage that’s right for you. We take the time to understand your individual needs, and compare thousands of exclusive deals from the UK’s top mortgage lenders, to find you the perfect mortgage.
If you choose to proceed with a new mortgage deal, we also manage your entire application for you; liaising with the appropriate parties and completing all the necessary paperwork, to remove the stress and hassle from you. Sound good? Get in touch for your free consultation!