Pay mortgage off 'in 10 years'

Date:Wednesday 24th February 2010
Author: Max Freedman

Homeowners could be able to pay off their mortgage in ten years if they are clever with their finances, has suggested.

With interest currently at such low rates with many providers, the money site told Yahoo! Finance that making overpayments could be a good option for many people.

For consumers who would normally pay off £1,000 a month on their loan, their payments may now be just £750 as the rates have fallen.

While some people may choose to enjoy this extra money by spending it, another option is to continue paying off the same amount each month from the loan, it suggested, as this will finish the mortgage faster.

Plus, not only will the size of the debt be reduced, it also means a cut in the amount of interest paid in the long run.

Several of the large lenders have recently cut the cost of their rates, including Santander, which took 0.25 per cent off its five-year fixed-rate product due to customer demand.