Paying off your mortgage early

Mortgage repayments are made every month to your financial provider, usually with interested added over the period of time that it takes you to repay in full. You do have the option to repay your mortgage earlier than the allotted time, but therebs some debate as to whether or not itbs a good idea.

The main reason that people repay their mortgages early is because it leaves them with a better financial future than if they keep making those monthly repayments. Being mortgage-free means that you can have more control over your income, and what you decide to do with the money that you have left over. You could also cut down your hours at work to spend more time at home. Paying off your mortgage also makes it easier to buy/sell your home.

If you do want to pay off your mortgage early, there are a few things you might want to consider beforehand. There can be significant financial penalties for paying off a mortgage early, meaning you could end up paying more than you were originally going to. This usually happens on fixed rate and discounted mortgages. You should also consider whether you can afford to pay off the whole sum without it putting a too-large hole in your pocket. Therebs no point paying off your mortgage in full if you canbt afford to.

If you canbt afford to entirely pay off your mortgage at the moment, but youbve found a better mortgage deal, you might want to think about remortgaging.