mortgage free

Would You Love To Pay Off Your Mortgage Early?

It’s got to be the dream, hasn’t it?

But we sign probably the biggest financial commitment of our lives and agree to pay it for 25, 30, or even 40 years. 

The average period for repayment of a mortgage is 25 years. But, according to research by mortgage broker L&C Mortgages, the number of first-time-buyers taking out a 31 to 35-year mortgage has doubled in the last ten years. But did you know that you can get a mortgage term from 6 months to 40 years.

So when you’re calculating what you can afford, taking the mortgage term over a longer time makes your monthly payments smaller – which is great for your affordability and your cash flow – BUT the longer the term, the larger the bill overall. It will mean actually paying off that mortgage costs considerably more overall.

Many providers offer the option to repay the mortgage off earlier – without penalties. 

I read about three shrewd savers reveal the little things that helped them repay their mortgages in their twenties and thirties – and how it has changed their lives for the better. Here’s the article >> I Paid Off My Mortgage in My 30s

Here are their top tips that helped them pay off their mortgage in their twenties and thirties. 

TOP TIP: It’s never too early to think about getting on the property ladder, stay at home and save up! Be sensible with money and stick to a monthly budget.

TOP TIP: Start now. Put specific dates in your diary and how much you aim to repay on that date. Use your experience of living with a pandemic and lockdown to think what your priorities are.

TOP TIP: Make a beautiful spreadsheet and take pleasure in small financial victories. You’ll be really surprised at the difference you can make.

If you’d like to talk through your options and love the idea of being mortgage free – sooner rather than later and would like to talk through your options call me on 07969 859749 and let’s chat!

Rachel x

** Think carefully about securing a mortgage against your home. Your home may be repossessed if you fail to keep up with the mortgage payments

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