If you have a mortgage or are planning to get one, then you know that paying it off is a daunting task!
But it doesn’t have to be a cause for concern as by taking simple steps such as properly managing your current and savings accounts as well as planning out your monthly expenses, you can help to soothe that panicky feeling that arises whenever someone mentions the mortgage word.
According to a study carried out by the Department for Communities and Local Government (DCLG) on English housing statistics, it found that 62.9% of the properties are inhabited by homeowners and that 46% of all homeowners are currently paying off a mortgage. It also noted that practically every first homeowner needed a mortgage but what is more telling is that the classic 25 year mortgage seems to be fading while 30+ year mortgages are becoming the norm.
So if you are searching for the easiest and most pain-free method on how to pay off your mortgage, then check out these pointers:
How to pay off your mortgage ahead of time
If you decided to buy a place of your own and you didn’t win the lottery which unfortunately is most of us then you know that paying off your mortgage in one lump sum is not going to be very likely. By making overpayments for your mortgage, you could save thousands of pounds in interest and even save on monthly mortgage insurance payments.
Earning money on the side by finding a new revenue stream is the best way to start the ball rolling and minimizing that mortgage! Here are some tips:
1. Open a savings account and place a portion of your salary in this new account or alternatively just make a direct extra mortgage repayment.
2. Try and make the biggest mortgage repayments possible to squeeze down the length of repayments as much as possible.
3. Why not use your newly acquired home to your advantage by subletting a room or two! Today, applications such as badi make it simple to find flatmates and lodgers for long term stays. That is to say that such apps will help assure you won’t end up renting out a room to the first person that gets in contact without even having the chance to know if your personalities will match! 🙂
Finally, you need to make sure that paying off your mortgage is the best place to put your savings. Get in touch with a bank branch manager or branch mortgage advisor so that you are as clued in as possible!