Make the most of your home
By renting out a spare room, you can earn extra cash to put towards your mortgage. Under the government’s Rent a Room scheme, you can earn up to £7,500 a year tax-free. Even renting out a room for a couple of nights a month on Airbnb could add up to significant savings.
Overpay your mortgage
By increasing your monthly mortgage repayments or making lump sum payments when you have extra cash available, you can pay off your mortgage faster and save on interest. Check with your lender to see how much you can overpay without incurring any penalties.
Target a lower loan to value
By overpaying your mortgage, you can lower your loan to value (LTV) and qualify for lower borrowing rates. This will give you more flexibility to make larger overpayments and reduce your debt further.
Pick your remortgage deal carefully
As mortgage rates are higher now, it’s important to find the best rate possible. Even a small rate difference can make a big impact on how much interest you pay and how quickly you can clear your debt. Consider using an independent mortgage broker to help you find the best deal for your circumstances.
Update your EPC
If you’ve made energy efficiency changes to your home, it could be worth getting a new energy performance certificate (EPC). A higher EPC rating could qualify you for lower interest rates through a green mortgage, allowing you to make overpayments and become mortgage-free sooner.
Consider an offset mortgage
An offset mortgage allows you to use your savings to lower the interest you pay on your mortgage while still keeping cash available. These mortgages are usually best for people with significant savings, but they can be beneficial if you have a large amount saved up for a specific purpose.
By following these tips, you can pay off your mortgage faster and save thousands of pounds in interest.
Did you miss our previous article…
https://hellofaread.com/money/3-5-million-scottish-mansion-and-100k-cash-up-for-grabs-in-prize-draw/
