AL­TER­NA­TIVES

Shares - - MONEY MATTERS -

Cut your term

– If you’re cer­tain you won’t need that spare cash for any­thing else, you could con­sider short­en­ing your mort­gage term next time you re­mort­gage. By do­ing so your monthly re­pay­ments will in­crease and you are ef­fec­tively per­ma­nently over­pay­ing on your mort­gage and cut­ting the to­tal in­ter­est you pay. This re­lies on you know­ing that you won’t need ac­cess to that money for any­thing else.

Use an off­set mort­gage

– An off­set mort­gage counts any money you have in an as­so­ci­ated sav­ings ac­count against the amount you owe on your mort­gage. This ef­fec­tively re­duces your out­stand­ing loan, but still gives you the flex­i­bil­ity to ac­cess the sav­ings money if you need it. Fewer providers of­fer off­set mort­gages and you are likely to pay a higher mort­gage rate in re­turn for the flex­i­bil­ity.

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