How to Pay off your Mortgage Early

A mortgage is a huge debt to have, it can hang around you for many, many years and be a constant worry. Paying off your mortgage early can have many benefits and is a fantastic move to make. It is not a walk in the park however, and paying off your mortgage early is a challenge. Below are some tips on how you can go about achieving this.

• When rates fall, keep over paying

Some mortgages will fluctuate over time depending upon the deal you are in. Some periods you may be having to pay, for example £600 a month and then when inflation lowers your mortgage repayments may drop to £450, but if you have already budgeted for spending up to £600 a month then continue to do so. By continuing to pay over you will knock years off the end of your mortgage and you will be clear of the debt sooner.

• Have discipline

If you are serious about paying off your mortgage early then you need to have discipline to do so. You will need to be aware of your household accounts and the money you have coming in and out. Look for ways that you can cut back so you can invest money in your mortgage repayments instead of other areas. If you free up money from other areas, then you can put it into your mortgage and you’ll be well on your way to paying it off.

• Check the small print

Some mortgage lenders have clauses in their contracts which make early repayments be penalised so before you do actually make large payments towards your mortgage make sure you read the kind of mortgage that you have and see where you stand. Some providers may fine you, others may not so it’s vital that you know where you stand.

• Add extra each month

Although money may be tight, try adding a small amount  to your mortgage repayments each month. This may only be as little as £50, but it could make a big difference in the long run. Always remember that every penny counts and it really does.

If you are aware of your finances, then you may be able to find ways in which you can save and put that money towards your mortgage. Always make sure you are aware of what is in the small print with your mortgage provider so you can make sure you are not going to be penalised for any over payments. If you are organised, well disciplined and aware of your finances, then you should be able to pay off your mortgage early.