Looking for Ways To Pay Off Your Mortgage Early?

Here’s the bottom line: a mortgage is debt. For a number of years we have relied on steady increases in our salaries as a way of paying off our ever increasing levels of debt. The big problem we currently face is low inflation. Basically, this means you can’t rely on large pay increases to help reduce debt…well, not in the short term. Secondly, the tax incentive that made many borrowers hold onto their mortgage was effectively abolished in 2001.

Morgage Overpayments

What is an overpayment? This type of mortgage loan lets you overpay a certain amount of cash each month which has an added adavantage of decreasing the life of your loan. Here’s an example: You have a £100,000 mortgage taken out over a 25-year period at 6%. By overpaying to the tune of £100 a month could actually save yourself around £27,000 of the repayments AND pay off your mortgage in 19 years.
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