Mortgage free: Britons could have sum paid off – Halifax releases ‘life-changing’ details

Martin Lewis compares paying mortgage over investing in savings

Mortgage payments are often a significant burden for many families, as the sum takes decades to pay off entirely. A mortgage is perhaps the most significant loan some people will take out during their lifetime, and so becoming mortgage free is seen as a big achievement. To help homeowners on this journey, Halifax has released details of a prize draw, which could see 10 lucky homeowners have their mortgages paid off entirely.

Halifax is to undertake a prize ‘super draw’ in the new year, which will see the 10 selected homeowners have their mortgage paid off – up to a value of £300,000.

However, for those who hope to be in with a chance of becoming mortgage free without effort, there are certain rules to bear in mind.

A person must be a Halifax mortgage customer in England, Wales or Scotland to be in with a chance of winning.

In addition, they must hold an existing Halifax or Bank of Scotland personal retail current account, and have paid at least £1,500 into this in the month before the draw takes place.

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Britons must also register for the draw to take place on either mobile banking or online banking. 

There are, however, some people who will unfortunately not be eligible to take part, and Halifax has outlined the details.

People will not be eligible if their property is or is set to be let out to tenants, or if the mortgage is part of the Deedstore Scheme.

Also ineligible for the prize draw are those who have a mortgage in arrears at the time of the draw. 

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But for those who aren’t lucky enough to have their mortgage paid off entirely, all is not lost.

This is because Halifax will also be providing other fortunate customers with the chance to win a cash prize.

In its usual prize draws, Halifax rewards 100 customers with prize of £1,000 each – but in January 2021, 150 customers will be chosen. 

Russell Galley, managing director of Halifax, commented on the matter.

He said: “We’re constantly looking at more ways in which we can reward our customers who rely on us at some of the biggest moments in their lives like buying a home – often the biggest financial commitment people will make.

“We know that winter can be a particularly expensive time, and this year – more than ever – winning this prize could be truly life-changing.

“We’re proud to be able to give 10 winners this kind of boost at the start of 2021.”

The best way to become mortgage free is generally considered as overpayment of a mortgage – with the more a person pays, the quicker they become debt free.

However, it is worth noting the average amount a person can pay off a mortgage in any 12 month period is usually 10 percent of the balance.

For mortgage payers, then, it is important to check the rules their lender has laid out to avoid incurring any unnecessary penalties. 

Some Britons may wish to set up a budget if attempting to become mortgage free on their own.

This can help households to clearly lay out their finances and tackle the areas where they would like to save more to contribute towards payments. 

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