Paying off your mortgage early – how to get the best results when overpaying your mortgage
If you want to pay off your mortgage early, how should you do it and what should you think about?
When you take out a mortgage, it typically lasts for 25 years, but you can take years off the term of the mortgage by making extra payments. For example, if you overpaid by £200 a month on a £200,000 mortgage charging 5% interest, you could take over seven years off the term and you’d save over £40,000 in interest. So, how do you do it and what do you need to know?
Could an offset mortgage save you money? Offset mortgages explained
An offset mortgage means you pay less interest and can shorten your mortgage term. Is it right for you?
If you have savings in an account earning a low rate of interest, you may be better off overpaying on your mortgage. An offset mortgage is a mortgage where you keep some or all of your savings in an account that’s linked to your mortgage. You only pay interest on the outstanding balance which means you save money and reduce the term of your mortgage. How do they work?
How to get the mortgage you want at the best rates; tips on how to get a mortgage
Checking your credit file, getting your deposit, closing old credit card accounts will all help
In the current market mortgage lenders definitely have the upper hand. And that means they’re being choosy about who they give a mortgage and who gets their best deals. You can’t guarantee you’ll be approved for a mortgage, but if you follow these tips from three independent mortgage brokers you will certainly increase your chances of getting the mortgage you want.