When will you be mortgage free? Working towards this goal

Becoming mortgage free is a common ambition for millions of homeowners up and down the country. Paying off your mortgage as early as possible is a major step on the way to a financially secure retirement.

For most of us, our mortgage is a huge debt that we carry with us for most of our adult lives. It may feel like a distant dream but paying off your mortgage early can be achievable.

Keeping an eye on the pennies

Setting goals and keeping a note of where your money goes each month are important in helping to set a budget and allow you to consider whether specific purchases are necessary. Shopping around to get the best deal on things is a good discipline to adopt. Simple things like switching energy supplier, never letting your insurance policies auto-renew and shopping down a brand, will all make a difference. If you receive a pay rise, consider increasing your monthly repayments. Frugality can help you save the pounds and deflect this money to paying extra on your mortgage. 

Even small overpayments have an impact

Mortgage overpayments can help you pay off your mortgage sooner and can reduce the amount of interest you pay over the course of your loan. The amount you overpay goes towards repaying the mortgage itself, not on any interest you owe. Research1 shows that if a borrower took out a £200,000 mortgage over a 25-year term, they could save £1,146 in interest (based on current rates) by making a monthly £10 overpayment, and they’d become mortgage-free four months earlier.

Those who can afford to make a £100 overpayment each month on a £200,000 mortgage could save £9,948 in interest and reduce their mortgage term by three years in the process. A combination of paying off capital and the consequent reduction in interest, result in the time saving.

Rules may apply

Most mortgage deals have a limit on how much you can overpay. There may also be fees associated with overpayments, so make sure you check that first to avoid incurring a fee. 

Some mortgages restrict the amount you can overpay to a percentage of the amount owed. If you’re paying your lender’s standard variable rate (SVR) you can usually overpay as much as you want. However, SVRs can be expensive, so you may want to consider remortgaging to a better rate instead.


Whilst paying less interest and being mortgage free earlier is an attractive prospect, it’s important not to overlook the need to keep some emergency funds set aside for unexpected bills and expenses. In addition, if you have other more expensive debts, you should consider paying those off first. 

If you have savings you could opt for an offset mortgage, which allows you to balance your savings against the amount you owe on your mortgage. This reduces the amount of interest you pay and could allow you to pay more off the mortgage balance. 

Reviewing your mortgage regularly will ensure you are on the best deal. Get in touch, we’re here to help.

1Santander, 2018