Borrowers can pay off mortgage early by keeping payments up

Borrowers who were paying more to keep up with their mortgage payments last year could keep paying the same amount and pay their mortgages off earlier, according to broker John Charcoal.

A lender who is paying £629 per month on a £100,000 mortgage at 5.75 per cent could now pay £30 less at 5.25 per cent

But John Charcoal is recommending that lenders pay the same amount and in this case the lender would then be able to pay off their mortgage two years early.

Katie Tucker, of Charcoal.co.uk, said that for most people the mortgage is what dictates when you can retire.

She added: "By paying it off even a few years early it can make a difference to your quality of life not only because of age, but because of the money you free up to spend on other things."

Last year Charcoal won the What Mortgage? Online Mortgage Broker of the Year award.

back