5 ways to pay off your mortgage quicker

If you are interested in understanding how to pay off your mortgage quickly then we are here to help!

There are many ways to do this – have a look below to see our top 5 tips

How to pay your mortgage faster

Overpay each month

Overpaying on your mortgage each month is one of the quickest ways to pay off your mortgage. You’ll be eating into the amount you owe and could knock years off your mortgage term.

Most lenders allow you to pay up to 10% of your mortgage balance as an overpayment each year, however it’s best to check with your lender as some can charge early repayment fees to do this.

To show you how overpaying works, we’ve worked out an example below:

Current mortgage debt: £200,000
Remaining mortgage term: 35 years
Annual interest rate: 2.15% (repayment mortgage) By overpaying £80 a month, you would save £13,735 in interest alone and pay off your mortgage 5 years and 2 months earlier – in turn saving you over £42,000 in mortgage payments

Reduce your mortgage term

Reducing your mortgage term means decreasing the amount of years you have to pay off your mortgage. As you’ll be committing to pay off your mortgage in less time, your monthly payments are likely to increase, however you will pay less interest in the long run.

You can opt to reduce your mortgage term when you’re due to remortgage and our advisers will be able to help with this. You should always make sure that increased payments will continue to be affordable.

Use your bonuses and tax refunds 

Rather than committing to pay extra each month, why not put away any extra money into a savings account and pay off a chunk of your mortgage at the end of the year. Use bonuses, tax refunds and any other unexpected money to make this payment.

Remortgage

Remortgaging your current property and changing your loan to either a new product with your current lender or to a completely new lender could save you a fair sum of money each money, particularly with interest rates as low as they currently are. You could then overpay on your new mortgage to pay off your mortgage faster. 

Win the lottery!

That would be nice wouldn’t it?! We can all keep on dreaming…

Our advice on the best way to pay off your mortgage in 5 years

This is of course completely dependent on how much left you owe on your mortgage and how much you can afford to pay, but the fastest way to pay off your mortgage no matter what amount of time you have is through a combination of reducing your term and making overpayments.

If you would like to get further information on the best way to pay off your mortgage or for help with remortgaging to save money please get in touch. We would love to help you.  

Share this article

About Key Solutions

Here at Key Solutions we believe taking out a mortgage should be easy. Why shouldn’t it? So when people say buying a home or getting a mortgage is one of the most stressful things ever, we say, come and speak to us.

Subscribe to our Newsletter

Don’t miss out on our award-winning mortgage and insurance advice!

If you would like to quickly understand how much you could borrow for your home moving mortgage, complete our property calculator:

Related articles

Buying a home is an exciting and significant milestone in anyone’s life. For most, securing...
If you’re going through the process of getting a mortgage or buying a house, you...
Buying a property is a long-winded, difficult process. There are so many different elements and...
If you’re in the process of buying a house, you may be wondering about property...
When you’re getting a mortgage, there are many unfamiliar terms you may come across. Understanding...
Are you a homeowner aged over 55 based in the UK? If so, it is...
Securing a mortgage can be difficult and confusing at the best of times. And if...
Skipton Building Society launches ‘Track Record Mortgage, a 100% mortgage (£0 deposit) that encourages renters...
Over 50 and concerned about getting a mortgage? As you get closer to retirement age,...
The mortgage process can be long and frustrating, so the last thing anyone wants is...
Your credit report is used by mortgage lenders to decide whether you’re a low-risk consideration...
After what seems like years of searching, you’ve found your dream home. It’s in an...
When it comes to buying a home, there’s more to consider than just finances. Although...
When it comes to figuring out the right mortgage for you, the variety of choices...
 Is now a good time to buy a house? It’s a question we often get...
Wondering if you can pay a mortgage off early? And if it is even worth...
When you apply for a mortgage in the UK, the lender will need a number...
With the huge increase in interest rates, almost daily we are being asked whether it...
Is now the best time to remortgage? Should I switch my mortgage rate now? We’re...
Stamp Duty is a major cost to budget for when it comes to purchasing your...
Everyone across the UK is facing higher living costs, but with little or no extra...
Are you thinking of taking your first step on the housing ladder? A key part...
When selecting a mortgage, it’s important to look at more than just the monthly repayments...
Going through a divorce or separation is stressful at the best of times, but also...
Mortgage refinancing or remortgaging is a subject we love to talk about often. We’ve written...
Taking your first step on the housing ladder is a very exciting time, however there...
If you’re wondering if you can get a mortgage when you are self-employed, you’ve come...
Buying your first home is a big step and a very exciting time in anyone’s...
Whether you are buying your first home, moving house, or looking to remortgage, you’re probably...
At a time when it seems to be increasingly difficult to purchase a property due...
The first time buyer mortgage market is still strong in the UK, with lenders offering...
You may have heard of the term ‘adverse credit’ but what actually is this? Adverse...
A second charge mortgage is essentially a second mortgage on your property. If you wish...
Today we are sharing our top tips on what you can do to improve your...
Now may be the best time to remortgage and save money on your monthly mortgage...
If you are interested in understanding how to pay off your mortgage quickly then we...
Whilst circumstances are going to differ from person to person, it definitely pays to discuss...
IR35 is a bit of a head scratcher and with the new rules coming into...
While most homeowners have a mortgage, many don’t realise that they could save money by...
One of the most common questions we get asked at the moment is about getting...
You have probably seen the news but we wanted to let you know the property...
There are many benefits of being mortgage free in the UK; from freeing up funds...