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How to pay off your mortgage faster to achieve mortgage free living.


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Mortgage free
living – pay off your mortgage faster



 

The Bank of
England has recently reported that home owners are paying off





mortgages

at a quicker rate than ever before – there are lots of tips
on how to reduce your mortgage and own your own home outright, here are just
a few suggestions on how to attain mortgage free living.
 
Repayment VS interest only

If you’re in a position where you have a secure
income and have benefited from the reduced interest rate, it
important to ensure you’re paying off the balance on your mortgage.

Taking the interest only option reduces monthly overheads but
significantly reduces the rate at which you repay your debt.

building with ball and chain

 

Resize and reduce

Some may find that they have bitten off more than they can chew with their
mortgage, whilst family circumstances may have changed for others, meaning
that they have more space than they actually need.

Assess your own situation and establish if and where there might be some
slack – if the circumstances are right, downsizing may be the most effective
solution to radically reducing the overall mortgage debt.
 



Mortgage payments V’s savings accounts

Whilst the Bank of England interest rate cuts have benefited homeowners with
Standard variable rate, they have hit savers hard. Do your research with
regard to what options are available on ISAs, high interest


savings accounts
and bonds and compare with a
flexible mortgage option, with regard to overpayments and annual lump sum
payments.
 


Earn an income from your home

Make your home pay it’s way by maximising on it’s returns as an asset –
investigate getting a lodger, renting it out at a premium rate as a holiday
home or weekend bolt hole, or even relocate to a beach shack on the other
side of the world for a year and rent your home long term – rental property
is extremely lucrative in the current market.
 
man wrapped in money tied around waistBudget and save

Take a good, long, hard look at your outgoings aside
from the monthly mortgage payments – making savings on utility and
shopping bills, mobile phone, broadband, credit card and insurance
payments can help you increase monthly mortgage payments.

Savings are available on most products, but consumers need to shop
around for best deals, which is relatively easy with comparison
websites.

 

 


 
Hints and Things endeavours to provide general information in relation
to various financial products. We hope you find this information useful.
In no circumstances should the information we provide be construed as
Hints and Things providing you with specific advice in relation to your
own circumstances, or on the suitability for you personally, of any
product or service referred to in this article.