Mortgage free status is, however, a goal which can be actualised, but only by taking certain steps. It usually takes the vast majority of people 25 years or longer to pay off their mortgage, and this is seen as one of the biggest life commitments anyone can make. Although some are happy to spread repayments over this amount of time, others are keen to quickly eliminate this debt for their peace of mind.
A mortgage is a loan which is secured against the value of a home until it is paid off.
And while mortgage payment holidays have been frequent in recent months, normally, payments are expected on a regular basis.
Meeting such a significant debt can be difficult, however, homeowners have revealed their top tips to paying off the debt.
The homeowners and mortgage payers took to the website Reddit to share their advice with those looking to pay off their mortgage.
Another homeowner stated that while they didn’t stick to a strict budget, they did manage their expenses to pay off their mortgage.
They stated they tried to live below their means as much as possible, adopting money saving habits and a frugal lifestyle.
However, they said their contributing factor to paying off their mortgage was “not going all out when buying the house”.
Purchasing a house which had affordable payments allowed them to increase and decrease their payments each month dependent on their financial circumstances.
A third said there was one key tip to help in paying off a mortgage.
They wrote: “Overpayment. I will be mortgage free in four years. I pay an overpayment every week.
“This is a great idea for those who like to see their progress. I budget ‘fun’ money for every weekend in case we want to eat out, or go to an event.
“Balancing goals with fun seems to be the best way to avoid burnout and keep focused.
“We got the cheapest house we could find, therefore paying it off is actually doable and not just a pipe dream.”
The Money Advice Service, backed by the government, has offered guidance on paying off a mortgage earlier than a set term.
If choosing to overpay, Britons should be aware of potential charges which could arise for going over a monthly payment limit.
However, the service also states it is important to prioritise more expensive debts if there are any, as well as to put money into a pension scheme.
People should also keep at least three months of money aside for any potential emergencies.