There are many people that would like to be able to pay off their mortgage early. They would like to be free of the debt and the stress that is associated with it. If you would like to be able to do this, then there are some tips below which will help you to be able to do this.
Consider an offset mortgage
An offset mortgage could help some people to be able to lower their debt more quickly. It works by having an associated savings account which you can use to offset what is owed on the mortgage. Any savings you have will be deducted from the total money owed and reduce the interest payment that you have to make. This can help to whittle away your mortgage more quickly and you will still have access to that money, which may need in an emergency.
Invest money each month
It is wise, even if you have a repayment mortgage, to invest some money each month towards paying it back early. Use an account which gives a reasonable return and you could tie it up for a while unless you are very close to paying back the mortgage already. You are likely to get a better return on your money this way, than if you put it in a savings account although there will be more risk.
Find a good mortgage rate
It is worth doing some research to see whether you are able to remortgage and find a better rate. There will be fees associated with this but they could be worth it if the savings are significant. If you are not sure how to calculate this, then it could be worth getting independent financial adviser. Otherwise there are many websites out there that have explanations of different mortgage types and what all the costs and fees mean.
Spend as little as you can
If you work hard to spend as little as you can each month then you are likely to have more left to put towards paying off your mortgage. Even small savings can make a big difference in the long term. It is therefore worth seeing where you might be able to reduce your spending so that you can save more money. You may find that you can reduce your spending in a lot of areas so that you can make quite significant savings.
Do not move house
Some people move house a lot, but it is worth understanding how this could be much more expensive than you might realise. The solicitors fees, estate agents fees, surveys and removal fees will add up to a lot of money. If you also extend the mortgage by moving to a more expensive property or to cover the moving costs this will mean that it will take even longer to pay it back You will also have other expenses such as having to pay to decorate your home to make it look good for selling and then paying for any decoration or repairs that need doing in the new house.