How to get rid of your mortgage and save more than £12,000
MORTGAGE FREEDOM is a goal that many people would strive for, and the pandemic may provide a great opportunity to achieve it.
Mortgage payments can be a major financial burden during a person’s lifetime, and many people will want to pay them off as quickly as feasible. The concept of overpaying, which data shows many people are already grasping, is often considered one of the finest ways to accomplish so. According to LifeSearch’s most quarterly update of the Health, Wealth, and Happiness Study, 7% of Britons have overpaid their mortgage in the last six months.
Those who have overpaid their mortgage on average have done so at a rate of £319 per month.
This works out to £1.5 billion a month for the UK as a whole, or £7 billion in the last six months.
According to experts, repaying a mortgage is likely to be a far more effective endeavor than saving.
Because interest rates are so low, Britons are basically losing money in accounts that pay less than inflation.
After a person has built up an emergency savings account worth three to six months’ worth of salary, they are urged to look into additional possibilities.
Overpayments, or the effective repayment of debt, could be one of these factors, pushing Britons closer to their life goals.
Those in Generation X – Britons aged 40 to 54 – have been seen to take the lead in achieving this goal.
A total of 9% of these people have utilized money to overpay their mortgage by an average of £326 every month.
Those in their mid-20s to late-30s made similar and more successful increases, with 12 percent opting to overpay.
“It’s encouraging to see the nation’s wealth begin to rebound after such a lengthy time of uncertainty and fear for so many,” said Emma Walker, Chief Marketing Officer at LifeSearch, which commissioned the survey.
“While household savings have declined since 2020 as expenditure has recovered, we’ve discovered that a large percentage of people are still opting to save.
“However, we can see that many people are choosing to overspend on their mortgages in order to pay off debts.”
Ms Walker discussed the consequences of overpayment and how it can have a significant impact. “Brinkwire News in Condensed Form.”