With the beginning of a new year, many of us are inspired to set resolutions to improve our lives in several ways. And if you’re a homeowner, there’s a resolution you may have on your radar: paying off your mortgage faster.

While rising interest rates can make this goal challenging, remember: even small tweaks can go a long way. So, here are some steps you can take to make it happen.

Start with a mortgage review

A comprehensive mortgage review with your mortgage adviser is the best place to start. For example:

• What’s your interest rate (or interest rates, if you have a split mortgage)?
• How much of the loan balance remains?
• If you’re on a fixed-term mortgage rate, how much extra can you repay without incurring an early repayment fee?

Understanding these and other details is crucial, as it forms the foundation of your repayment strategy.

Take a closer look at your budget

In times of rising living costs, finding extra money to put towards your mortgage repayments may not seem easy. But if it’s been a while since you assessed your budget, you might still find ways to save.

For example, there may be redundant subscriptions, unused memberships, or avoidable splurges to be unearthed. Redirecting this money towards your home loan could lead to sizable savings over time. And don’t underestimate the opportunity to start a side hustle: be it freelancing, consultancy, or e-commerce, there’s potential to bolster your income –

and your mortgage payments.

One milestone at a time

Large goals can be daunting, and paying off your mortgage is probably your largest financial goal. So, it can be a good idea to break your repayment journey into smaller, measurable milestones, like paying off a certain percentage annually.

On this note, if you’re on a fixed-term mortgage rate, don’t forget to check the limit that you can make additional repayments without incurring penalties.

And of course, once you hit a milestone, no matter how small, make sure you celebrate it! This not only fuels motivation, but also helps you keep track of your progress.

Fixed-term rate maturing?

If your fixed-term rate is due to expire in 2024, it’s decision time. Should you refix, and if so, for how long? And does your budget allow for a tad more than the minimum required repayment?

If you’re weighing up your options, consider asking your mortgage adviser who can help you make an informed decision aligned with your long-term financial goals. It’s important to evaluate what interest rate strategy is right for you.

Reach out to your mortgage adviser

Getting mortgage-free is a long journey, with plenty of unexpected twists and turns. This is where a mortgage expert can be invaluable: they can help you adjust your mortgage strategy based on your ever-changing needs and the current lending environment.

Click here to learn more about the benefits of mortgage advice.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.