Early finish

Clearing your mortgage early could give you huge savings on interest payments and free up a lot of cash each month, but how can you do this?


Remortgage regularly

This will keep your interest rates as low as possible. If your home has increased in value, you’ll have a lower loan-to-value (LTV) ratio. This will give you more access to lower interest rates which lowers monthly payments. But rather than making the lower monthly payment you could keep paying the same which will reduce your mortgage term.


If you get a pay rise

If you get an annual salary rise why not consider increasing your monthly mortgage payments. Just make sure you don’t overpay too much and incur an early repayment charge. Check with your mortgage provider how much extra per month you can pay without incurring any charges. Even small regular overpayments will make a significant difference to the time it takes to pay off your mortgage and could save you thousands of pounds.


Round up your monthly payments

Get in the habit of rounding up your monthly mortgage payment. If its £603, pay £610. When done on a regular basis it will shave years off your mortgage without you feeling the pinch.


Offset mortgage

If you have a decent amount of savings an offset mortgage is another way to clear your mortgage early without having to pay anything extra each month. You place your savings in a savings account which is linked to your mortgage account. Your savings are then ‘offset’ against your mortgage debt which reduces the amount on which you pay interest. By keeping your mortgage payments the same you will repay the mortgage much sooner.


For help or advice on mortgages contact one of the Aspire team on 01928 735510, or use our contact form and we will give you a call.