SHAVE FOUR YEARS OFF YOUR MORTGAGE
THIS week I’ve been talking a lot on TV and radio about mortgage rates going up really quickly and how people need to fix their mortgage, or remortgage as soon as possible before the rates all go up again.
If you are already settled into your mortgage, it’s more important than ever to try to pay it off as fast as possible to save money on interest and become debt-free early.
So I’m pleased to see a new, free app called Sprive ( sprive.com) which aims to help you chip away at your mortgage each week by working out how much spare cash you have after your normal expenditure and setting aside that amount so that you can make overpayments direct to your lender with one tap. The handy thing about this is that it could be really small amounts that you put away but every bit helps. Also, as it’s done automatically, you don’t have to think about it and the savings build up on their own.
The company says that the average Sprive customer is currently on track to save £10,000 in interest and shed four years off their mortgage. Anyone who remembers the mortgage rates of the 80s and 90s will know the cost of borrowing to buy a home could not just double, but could be four or even five times what it is now. So the quicker we pay off these loans, the cheaper it’ll be for us in the long run.
With interest rates rising so fast and the cost of living going up weekly, being on the right mortgage is crucial, now more than ever.
Sprive also scans the mortgage market every day to find the best deals for customers so that when a current deal ends, you can switch to a new, hopefully better, one.