‘Mortgage free at 33!’ Homeowners share top tips to paying off sum early – could you?

This man intends to live mortgage free in a refurbished caravan

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Mortgage payments are some of the biggest financial responsibilities a person will take on in their lives. As a result, many people will be hoping to eliminate these payments as soon as possible in order to live without the monetary burden.  One homeowner took to the website Reddit to explain how they were able to achieve the goal.

And others also chimed in with their experiences of mortgage payments. 

The homeowner said they were motivated to purchase their first home due to valuing “stability, privacy and freedom”, but they then continued their journey by forward planning.

They said: “I resolved I would always live within my means, and that meant my first property would not be a ‘forever home’.

“I then finally found a property which aligned with my needs and which I felt comfortable with, and executed the purchase.

“Seeing the size of the first interest charge applied to my mortgage literally made my eyes water, but I was not deterred, and I set myself a goal of paying off the mortgage in 10 years.

“I stuck to my budget, continued to save regularly, and continued to work hard which led to ongoing promotions and pay increases which in turn helped increase the rate of savings and the amount held in the offset account.”

During the first few years of their journey, the homeowner said they worked extensive overtime hours to cover their outgoings and save the majority of their salary.

Once they had achieved promotions, they siphoned their salary off straight into mortgage payments, while keeping some back for limited expenses. 

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Progressing them towards their ultimate outcome, the homeowner ended up essentially mortgage free by January 2021, having started their journey in 2009. 

For those who are hoping to achieve mortgage free status, the homeowner had a few key tips to help.

Firstly, they said, it is important to be realistic with affordability and make compromises in order to sell and then buy again when circumstances change.

Next, setting goals and being consistent were considered as the best practice points to take into consideration.

After a plan is created, it should be regularly reviewed and modified in order to make sure one is on track.

Certain individuals may also be able to speak to their lender to find a new deal, the homeowner suggested.

In the UK, this could particularly be the case once a fixed term deal comes to an end after two or five years with a certain provider.

Finally, the homeowner stressed that “building enjoyment” into a mortgage free plan is also an important course of action.

Many people are averse to becoming financially independent for the reason they fear they will not enjoy life.

But the individual stressed that striking a balance between forward-planning is key, but of course that this can differ from person to person. 

One person said they were following the same path, and planned to be “mortgage free by 2023”.

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While another somewhat disputed the idea, instead suggesting: “You would have been way better off keeping this mortgage and investing it in either another property or shares.

“It’s the difference between being comfortable off or rich enough to do whatever I want.”

Overpayment of a mortgage is generally considered one of the best ways to accelerate towards a mortgage free goal.

This is because it does not allow the opportunity for too much interest to build up, or snowball, which many people find to be the main challenge.

However, it is worth noting many providers have a limit on how much a person is able to overpay on their mortgage each year.

For most, this is 10 percent of the current balance, so Britons should always bear this in mind. 

For mortgage needs, individuals are generally encouraged to speak to a mortgage broker.

These experts can often provide tailored advice to suit a person’s financial circumstances. 

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