On this website, I find alot of people searching for: “how to pay off your mortgage early” I can understand both the motivation and reasons for seeking to pay off your mortgage early. There is a post here:
However, in my personal circumstances I decided the best course of action was to increase my mortgage term by as much as possible. Not many people advise this, usually we are encouraged to pay off our mortgage as soon as possible. People often ask me why I extended my mortgage term; these are my reasons for extending my mortgage term.
1. Reduce Monthly Payments.
This is the primary motivation for extending mortgage term. I was paying £830 on a £140,000 mortgage. I now pay about £85 a month less. The main problem is that £830 was a very high % of my disposable income. After taxes and necessary bills, it is close to 55% of disposable income. This is a result of getting a mortgage 7 times income.
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Have you ever wondered How might I go about paying off my mortgage early? If you are able to pay off your mortgage early you can save significantly through lower compound interest payments.
Top Tips to Pay off your Mortgage early.
1. Flexible Mortgage.
Firstly we need a mortgage product that allows extra repayments, without charge. It doesn’t necessarily have to be termed a flexible mortgages. Many different mortgage types also offere a degree of flexibility. Flexible mortgages
2. Remortgage for lowest interest rate.
Make sure, you are not paying extra money for remaining on your lenders standard variable rate. As soon as possible negotiate the best remortgage deal to find a more attractive quote. You can use the saved interest payments to pay off the mortgage capital. Remortgaging
3. Reduce Other Bills where Possible.
Many bills such as electricity and Gas can be reduce by searching online for the lowest price. Switching energy and cable providers can save some money that can be used to pay off your mortgage debt. Bear in mind that the market is fast changing. Remember to keep looking out for the best deals, perhaps once a year.
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