How to pay off your mortgage early

November 30, 2016 by Brendan

Advice & Tips

Paying off your mortgage faster is a good idea while interest rates are so low. Most lenders will allow you to pay extra each year without charging penalties, although this is something you should check first. By paying extra, you can reduce your mortgage term and save thousands of pounds in interest.

One of the simplest ways to pay off a mortgage early is to take the mortgage over a shorter term. Many mortgages are calculated over the standard 25 years. However, you can take out a mortgage over any length of time, starting from around five years. However, you may have to consider the affordability checks, as a lender may decide that you are unable to afford the higher monthly repayments.

Overpaying a regular amount every month will also help you to pay off your mortgage earlier, while reducing the amount of interest you will pay. If you unexpectedly come into some money, perhaps an inheritance or a windfall, you may be able to use it to pay off some of your mortgage.

Another option is to switch to a better mortgage deal. There are plenty of low interest rate deals available, especially for those with more equity in a property. Paying a lower rate of interest will save you money every month, which will save interest overall.

If you are considering paying off your mortgage early, speak to a mortgage adviser, as they have completed CeMAP training and can help you to save money where possible.