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Here are 10 ways to pay off your mortgage faster.

  • Be wary of honeymoon offers
    While it may seem that a great "honeymoon" period at the start of your mortgage period is attractive, in the long term, this may not be as appealing as you first think. Yes, the initial cheap rate is definitely of benefit to many property buyers but if this is going to see you paying off the mortgage at a higher actual variable rate over 20 or so years, this may not be the best option for your needs. There may also be an agreement that there will be refinancing costs associated with changing the terms, so be wary of what is actually on offer when you sign up for a mortgage.

  • Pay back money at a higher rate if you can
    This isn't always possible for all homeowners but if you have the chance to obtain a low interest rate mortgage but have the flexibility to pay back at a higher rate, you should do so. This will help you to pay off the loan at a faster rate, which is the key to saving money in the long term. Reducing the amount of time you pay interest for can help you to save money in the long term but of course, will increase the level of payments you make each month. In theory, this is a great tip but you need to make sure that your finances are robust enough to make this style of commitment to paying off your mortgage.

  • Make more payments
    Again, this requires a level of flexibility that not everyone has, but if you can, make more payments to your mortgage. A trick that many mortgage holders do is decide to make a payment to their mortgage every fortnight. Doing so means that you make the equivalent of 13 monthly mortgage payments a year, not 12, so you make an additional payment and in the long term, this will help you to pay off your mortgage at a faster rate.

  • Focus on the capital element
    When you start paying off the mortgage, it will seem as though you are only paying off the interest aspect. In order to see some movement, you need to go beyond the interest payments and effect the principal amount, and the earlier you do this, the better it will be for you. This is why you should focus on making payments above the interest payment level in the early stages of your mortgage.

  • Speak to your mortgage lender about any packages they offer
    It may be that your mortgage lender will be able to provide you with a financial package or assistance that helps to save money. Making savings on aspects like home insurance, credit card payments or even your current account may not sound like a lot, but the more you save each month, the more money you can put towards paying off your mortgage. The more money you can put towards paying off your mortgage each month, the quicker you will pay off your mortgage.

  • Can you consolidate your debts?
    It is likely that your mortgage payment is the only debt or credit you are paying off. If you have a range of loans or finance packages to pay off, is it possible to consolidate them and make a more effective monthly payment? This isn't always possible but if it is, the savings you make each month, while reducing debt, should help you to allocate more money to paying off your mortgage.

  • Can you find a lower rate?
    Remember that you don't actually owe a mortgage lender any loyalty. This is a financial transaction and you should be looking for the most suitable rate for your needs. Many people have saved considerable sums of money on their mortgage by switching between rates. It is important that you consider any fees or penalties associated with switching your mortgage, so it may not always be possible to save money by switching, but if you can, it is a strategy worth pursuing.

  • Cut back on luxuries
    This may sound like an obvious tip but it is one that many people overlook. When you save money, you can use this money to pay off your mortgage at a faster rate. If you are the sort of person that needs to have a coffee on the way to work in the morning or you buy lunch every day, switch to making coffee and sandwiches at home. You may not think that the amount of money you save in a day or week will make a difference but over the course of the year, this is a lot of money that can be put towards your mortgage payments.

  • Don't take things for granted
    When it comes to managing your mortgage in the best manner, be proactive. You will be busy and have a lot of things to do with your time but in order to make sure that you make the best decisions with regards to your mortgage or making payments, stay in touch with the latest products and offerings in the mortgage market.

  • Make your lender aware that you are continuously looking for better deals and will be happy to switch
    Mortgage lenders don't want to lose clients, and if they can provide you with a deal that will keep you with them, they will at least consider it and "run the numbers". If you make it clear that you are keen to find the best possible deal for yourself, your mortgage lender is more likely to provide you with an offer that is better for you than your current loan. There is no harm in being proactive when it comes to finding the best deal for your mortgage, so make sure that your lender is aware of your intentions. If you follow these 10 tips to paying off your mortgage faster, you should find that you can manage your mortgage in a more efficient manner.
  • Published on 18 September 2017

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