7 tips to get your mortgage paid off quicker
Buying a property is likely to be one of the biggest financial decisions an individual will make during their life, so it is vital that people understand the plethora of options available to them when they decide to put a foot on the property ladder.
Are you on track to pay off your mortgage? Could be you be doing more each month to minimise your debts? Are there better options out there? Have no fear, because a financial adviser is here!
Courtesy of Stadden Forbes Wealth Management’s Robert Forbes, here are seven handy tips to help you make the most of your mortgage.
1. Ensure you understand your loan-to-value (LTV). The more of a deposit you have, the better the rate. By getting an extra 5% deposit you can reduce the interest rate drastically.
2. If you think that values are going to rise it may be worth taking out a two-year deal, rather than say a five-year one, and then remortgaging in two years’ time when the LTV may be able to take you on to a much better overall rate.
3. Overpay the mortgage as much as you can. We are currently in good times for borrowers, so the more you can pay off now the better. The more you overpay when interest rates are low, the less debt you’ll have when the rates eventually rise.
4. Look to shorten the term of your mortgage. You can knock years off your mortgage by increasing the amount you pay off each month.
5. Always use an adviser who looks at the overall cost of a mortgage. You need to consider all the monetary outgoings, including arrangement fees. A good adviser will look at total costs, which is really the only thing that matters.
6. Ask an adviser for a good solicitor who can ensure the conveyancing is done quickly and at the best price.
7. Only use offset mortgages if you know for certain you are going to use them. Many people like the idea but never actually have significant cash to offset against their mortgage, so end up paying for a product they never use.
Are you worried about your mortgage, or want to know if there are better options available to you? An independent financial adviser could help. Search the VouchedFor database to find top-rated advisers in your area.