A few examples of how to pay off your mortgage quicker

By in Blog with 0 Comments

Paying off your mortgage early is one of the best investments you can make, not only is it a huge weight off your shoulders, financially and emotionally, you will also no longer at the mercy of the see-saw property market.


Paying off your mortgage off early is like paying off any debt quickly, it’s a question of cutting down on your outgoings (where possible) and putting any extra cash you have into your mortgage and nothing else. While paying off debt is never an easy task, we’ve come up with some helpful tips to help ease the process.


Shorten the repayment terms-


When calculating your monthly mortgage affordability, lenders use a standard repayment term of 25 years, however, this isn’t set in stone.  So as long as you’re financially able to pay off the higher monthly repayments, you can take out a mortgage for as little as 5 years – and the shorter the mortgage term, the cheaper it will be overall.


Even if you shorten your payment terms by a matter of a few years, it will make a difference;


If you repaid £229,890 over 25 years, it would cost £1,276 a month and the total interest would be £153,000.

If you shortened the term to 23 years, while your repayments would be slightly higher at £1,337 a month, total interest would ring in at £139,174.

Shorten the term again to 20 years and monthly repayments rise to £1,453 – but total interest reduces to £118,867.


Make more frequent payments


The simple fixes in life are most often the best, though not necessarily the easiest. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly rather than monthly basis.


This means you’ll feel the blow less if you decide on payments every two weeks rather than once a month. Also as there are twenty-six fortnights in a year, as opposed to 12 months, paying fortnightly means that you will be effectively making 13 monthly payments every year – and this will make a huge difference.


Save where you can


If you don’t have that extra cash to pay off extra amounts or make more frequent payments, don’t worry, there a less obvious ways to save some money. For example, when was the last time you switched energy supplier? If it’s been a while, there’s a good chance you are now on the supplier’s standard tariff, meaning you’re paying out far more than you need to.


Soon you’ll find other ways you can save, even if it means giving up your daily trip to the coffee shop, it all adds up!

For more of our property related blogs please see- http://move.uk.net/blog/

Why not like us on Facebook for more tips- https://www.facebook.com/moveuk/

Share This
George Tatham-Losh

Since forming the business in 2009, our founder, George Tatham-Losh, has become highly regarded as the local go to expert for advice on maximising property values and getting the most out of property investments, regularly speaking at events and holding well attended seminars. Born and raised in Cheltenham, George knows the town and County like no other and knows what works in the area. Alongside George is a specialist team of agents with a wealth of experience to help you sell, buy, let or rent property in Gloucestershire.

Blog Post Disclaimer

This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Downloadable Files and Images Any downloadable file, including but not limited to pdfs, docs, jpegs, pngs, is provided at the user’s own risk. The owner will not be liable for any losses, injuries, or damages resulting from a corrupted or damaged file.

Comments Comments are welcome. However, the blog owner reserves the right to edit or delete any comments submitted to this blog without notice due to :

  • Comments deemed to be spam or questionable spam.
  • Comments including profanity.
  • Comments containing language or concepts that could be deemed offensive.
  • Comments containing hate speech, credible threats, or direct attacks on an individual or group.

The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at anytime.

If in considering action upon the contents of this blog, one should always seek professional advice.

We Won Banner We Won Banner