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How to live mortgage free in just 5 steps

MORTGAGES | 14.08.2021

They say the best things in life are free. And that includes living mortgage free! If you plan ahead and budget accordingly, there’s nothing stopping you from paying off your mortgage early and saving yourself thousands of pounds in potential interest. To help you get started, here’s a quick guide on how to reduce the repayment years and live mortgage free.

Is it worth being mortgage free?

Becoming mortgage free can give you the financial freedom to pursue other ventures. Whether you’re hoping to travel the world or retire comfortably, paying off your mortgage early can free up your cash for any long-term plans.  But the path to living mortgage free isn’t always an easy one. You will need to be wary of early repayment fees, and it might be worth paying off some of your more expensive debt first.  As long as you have enough savings to fund your spending in the meantime, becoming mortgage free could be beneficial for you. Here’s how to do it.

1. Remortgage for a better deal

Shopping around and remortgaging for a better deal can help you save a substantial amount in interest over the course of the mortgage term. The lower your mortgage rate, the easier it is to clear your debt, so it’s always worth keeping an eye on your current mortgage deal and switching when it’s due to come to an end. 

2. Make mortgage overpayments to live mortgage free quicker

Overpaying on your mortgage can be a more flexible way of reducing the amount of interest you owe and becoming mortgage free quicker. You can either increase your monthly payments or pay off a lump sum, but there can be additional fees to prevent you from paying off your mortgage too quickly.   Most lenders allow you to overpay by 10% each year before you incur fees. Check your mortgage terms, as fees vary between lenders, with some not allowing overpayments at all. 

3. Reduce your mortgage term 

When committing to a shorter mortgage term, your monthly payments will increase, giving you the chance to become mortgage free quicker than your original term agreement.  However, you need to bear in mind that you’ll be stuck with your new term. If you’ve recently had a large pay rise and can comfortably afford larger repayments, reducing your mortgage term might be beneficial. On the other hand, making overpayments is a better option if you’d prefer to have more freedom as you can stop making them whenever you’d like. 

4. Offset your savings

Another way of increasing your chances of living mortgage free is to choose an offset mortgage. This is where you put your savings in an account tied to your mortgage. Your savings will be ‘offset’ against your mortgage’s value and you’ll only pay interest on your mortgage balance once your savings balance has been deducted from the equation.

5. Consider cutting down on luxuries

As nice as it is to pack your bags and escape the country for a week or two, skipping on luxuries such as holidays one year could help you save hundreds that you could put towards overpaying your mortgage.  If you’d like to live mortgage free, please don’t hesitate to get in touch. Our expert advisers can help you find the best deals on the market and assist you in making overpayments at the right time.
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In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

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