Many people like the idea of repaying their mortgage early. This is because it means that it will be cheaper as they will be paying interest for less time. It also means that they will no longer need to find the money each month to make the repayments and can use it for other things or put it into a savings account. Some people find that the burden of having a mortgage hanging over them is stressful and so repaying it early can help with that. However, there is a big difference between wanting to do this and having the resources available to actually do it. There are things that you can try though, which will help you to have more money available to make overpayments.
Switch to a Cheaper Mortgage
The first useful step is to switch to a cheaper mortgage. This will allow you to be able to pay less in interest on the mortgage and so you will have more money available for the actual repayment. This will be easier for some mortgages than others though. You will find that there are some mortgages where you might be tied in for a particular time. This is most likely when you have a fixed rate mortgage. If your mortgage is like this then you will not be able to move lenders until this time is up and you may even need to stay with them afterwards too. Soe will charge a fee if you switch. This can just be a small administration fee but with some lenders it will be a significant amount of money. It is therefore worth checking this to start with and seeing if there is a charge and if there is then working out of it is worth paying considering hat you might be able to save. Make sure that you compare all lenders that you can find and then you will know exactly who is the cheapest.
Use Your Savings
If you have some savings then it might be a good idea to use these to repay some or all of the mortgage. This will normally be well worthwhile, bit it will depend on how much interest you are getting on your savings. Normally savings interest is very much lower than mortgage interest so it is worth using the savings to repay. However, there may be some cases where this is not the case and it is important for you to check this out. So, find out what the interest rate if on your savings and what it is on your mortgage and compare. Do bear in mind that there may be other fees to pay with the mortgage too. You may have to buy insurance, such as life insurance to go alongside the mortgage as well, which you would not otherwise have and that could add to the mortgage expenses.
Pay Less for What you Buy
It is well worth comparing the prices on the things that you are buying to see whether there are things that you could buy for less. For example, many of us stick with the same mobile phone provider, insurers, electricity providers etc, year after year but if we compared prices we could find that we are paying a lot more than necessary and that we should consider switching so that we can pay less. It is well worth comparing the prices on everything that we are buying and that could help us to have more money available to put towards paying off the mortgage without having to buy less,
Use All Spare Money for Mortgage
It is wise to make sure that all of the spare money that we have is put towards the mortgage. Therefore, if you have money left in your account after buying essentials, then it can be wise to transfer it to your mortgage account so that it can go towards repaying it.