Paying off a mortgage early can be a big dream for many home owners. A mortgage can be a very big burden as it is likely that you will be making significant repayments every month for decades, perhaps twenty-five or even thirty years. This can be a huge responsibility and maybe even a burden and it can be a relief to pay it off early. As the years go on, the amount of the repayments is likely to become a smaller percentage of outgoings, assuming interest rates do not increase in line with inflation and so you may be in a position to be able to afford to pay more off.
You will need to check that you are able to pay back the mortgage early. This is normally possible but there may be early redemption fees which are designed to stop you switching mortgage providers and they can be really expensive and therefore mean that it is not worthwhile paying the mortgage off early. You will need to calculate how much money you could potentially save by paying it off early and work out whether that is more than the cost of the early redemption fee. This could depend on how close you are to the end of the term of the mortgage and how much you intend to pay off.
You will need to talk to your lender therefore, about paying the mortgage off early to find out whether it is a possibility and what the potential costs will be. Some will be flexible and have no charges, some may have a modest charge and some may be rather expensive. It is also worth finding out if there is a specific procedure to apply to pay it off early.
Obviously, in order to pay the mortgage off early or to start making overpayments, you will need to have more money available to do so. Some people may already have this or perhaps have some savings they would like to use to overpay, but this may not always be the case. It may be that you really like the idea of being able to pay off your mortgage more quickly but you want help in finding the money to be able to do this. If the money is not easily available then you will need to have to find a way to free some up.
To do this you may need to change your spending habits so that you spend less money on luxury goods, reserving most of your spending for necessary items so that there is some left to overpay the mortgage with. You could try to reduce some of your regular expenses too, such as switching suppliers or brands so that things are cheaper, leaving you able to buy the same amount but spend less money for it. Another options is to try to increase your income such as finding a better paid job, getting a second job, doing some freelance work or selling things. There are many ways that you can earn more money and you just have to decide what will be best for you and the time that you have for extra work.
However, making more money available is one thing but being committed enough to actually use it for paying off the mortgage is another. Although you may be very enthusiastic to start with, it could be that you will lose your motivation after having to spend as little as possible, working hard to earn extra money and going without those little treats that you might enjoy. This can be difficult at the best of times but if you are doing it for a long time it can begin to get really difficult. It is therefore really important to stay focused on your goal so that you remember why you have to do this. Consider how much better things will be once you have paid off the debt and focus on that great long term outcome. Remind yourself of how much money you will save by doing this as well as how good it will feel to get the mortgage paid off and no longer have that debt to worry about. You can treat yourself if you feel that you really need it, but try not to make it a habit as it could have a big effect on the rate that you can pay back the loan.