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.

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.

Budget 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.