There are a few different ways you can pay off your mortgage early. With most of the mortgage products that lenders provide, they allow a 10% overpayment, over allowance.
This can be paid on a daily, monthly or an annual basis. This means that you can pay into the mortgage as often as you want, as long as you don’t exceed the 10% limit on an annual basis.
You then reduce the term that you’re paying on the mortgage, so when you come to remortgage in two, five or however many years’ time, you’ll find that the actual term is a lot less due to those overpayments.
Taking out a shorter term on the mortgage is a way of paying off the mortgage early, as long as it is affordable for you on a monthly basis. It means the mortgage is paid off far quicker and the other benefit is that you pay far less interest if you take the mortgage over a shorter period of time compared to a longer one.
If you’d like to discuss paying your mortgage off early, please do get in touch with our team of expert mortgage advisers.