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How to pay off your mortgage early.

Updated on August 3, 2015

How to pay off a Mortgage early

Having a mortgage is a very big commitment that each of us have to take on in life to be able to have a roof over our head. Paying it off early rather than paying it until the term finishes can save a lot of money.

We were lucky to have been given a mortgage loan by one of the high street banks to buy our studio flat which we liked. It was a newly refurbished studio flat which we bought through a mortgage loan. After 8 months of renting, we moved into our new home. The amount we were paying the rent was like the same amount as our mortgage, that is why we thought of getting a mortgage rather than spend money on rent which we never get back. At least with a mortgage, we know that after a few years we will have a home that we can call our own home and paid for early.

How we paid off our first mortgage early

After we moved in to our own flat, we were really focused and made a decision to pay off our mortgage early. We did not want to be paying our mortgage when we are retired so we had to do something then.

Here are the steps we took to pay off our first mortgage early.

  1. We did not go on holiday abroad for a while. We just went on a weeks holiday here and there in England when using our annual leave or holidays. Or sometimes we will just have picnic on the beach as we live near the seafront during our days off to save money.
  2. I did some extra cleaning jobs and overtime to earn extra money to save for the mortgage.
  3. My husband did some temping jobs for an agency to supplement his full time income, too.
  4. We opened a separate joint bank account just for our mortgage bills and every month we put money into it to pay the mortgage.
  5. We lived within our means and saved as much as we could to be able to pay off our mortgage early.
  6. At some point, we had to change our jobs to get better income so we could pay off our mortgage early.
  7. After 10 years of working hard, we sold our flat and made a small profit to buy another place for us. We did not have to finish the 25 years which was the term for our mortgage. We were lucky to have sold our flat when the housing prices were going up.

It was important to us to be able to have our own home. From the sale of our studio flat, we bought another place which we knew we could afford a mortgage on. This time, it was a dilapidated detached bungalow which was the cheapest home we could find then. We said at the time, we could make it nice for us. My husband is a very good DIY man. He is good at doing things up like painting and decorating our home and I am good at cleaning up the mess. We bought a freehold home this time instead of a leasehold home. We learnt from our previous mortgage that the flat we bought was leasehold and that it was part of 22 flats in the building and when your property is leasehold, you will pay maintenance for all 22 flats as well which was another reason why we sold it. The maintenance and ground rent was going up every year and it can be costly.

How we paid off our second mortgage early.

We learnt from our first mortgage that we could also pay off our second mortgage if we work harder like we did in the past. So this is what we did. It was slightly different from last time. We thought we could do something different by working together as a couple.

1. Changed our jobs, we bought a newly opened newsagent shop(was opened 5 months by previous owner). We wanted to try being self-employed for a change. We both run the newsagent shop for a year but we found that it only brings income for one person. So I decided to find myself another job, and was lucky enough to get one as a supermarket checkout operator. The pay wasn't great but I enjoyed the job. I was only part-time but topped-up my wages in overtime, I also helped my husband in the shop when I was not working in the supermarket.

2. After 5 years, the shop's takings started to go down as one of the Post Office near us was moved to another location and most of our customers come from the Post Office. So we decided to sell the shop before we go bust. We haven't made a lot of profit but we made enough to keep us going while my husband had to find a job which he did find in no time.

3. We had taken an endowment policy with our first mortgage which we carried over with our new mortgage but because they wrote to us and said that it will not be enough to pay off our mortgage when it matures, we cashed it and used it to pay off some of the capital of our new mortgage.

4. We have two bedrooms in our home so we rented one of the rooms to get more income for our mortgage. It is not ideal sharing our home with strangers but we made sure we get reference for our tenants. We were lucky to have had good tenants except for one who did not pay his rent for three months but these are risks we had to take when having tenants.

5. Then after 10 years of hard work again we paid off our mortgage early. I must say, it was not easy trying to be economical in everything like food, clothes, shoes, holidays but it is pure joy when we paid off early our mortgage and enjoy the home we got now.

How to finish paying off your mortgage early

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Paying off your mortgage early

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    • liesl5858 profile image

      Linda Bryen 2 years ago from United Kingdom

      Thank you Bill, just wanted to share to others that despite being homeless at first we managed to own our home now thru hard work and sacrifice and how we did it might inspire others, too.

    • billybuc profile image

      Bill Holland 2 years ago from Olympia, WA

      Great advice. For financial freedom, this is mandatory, and you have shown the way for those interested.

    • liesl5858 profile image

      Linda Bryen 2 years ago from United Kingdom

      Thank you MarloByDesign for your kind comment. I agree with you at first I hated having strangers in our house but sometimes we had to make some sacrifices. We were lucky to have had good lodgers. However, since we paid our mortgage, we have no lodgers anymore. We want to enjoy our home which we worked hard for.

    • MarloByDesign profile image

      MarloByDesign 2 years ago from United States

      I found your Hub very 'Useful' and rated it as such! I appreciate most of your tips; however, I don't think I would feel comfortable renting out a room in our house. Your tips on saving money and living below your means were spot on.

    • liesl5858 profile image

      Linda Bryen 2 years ago from United Kingdom

      Hi! Maureen, I have seen your first comment, I think it was my fault for not editing the comment section in the first place, I do apologise. Yes, I do realise that not everyone can do what we did to finish paying off our mortgage early but hope it will give some hope to those who are still paying off their mortgage.

    • liesl5858 profile image

      Linda Bryen 2 years ago from United Kingdom

      Hello! Maureen, I thank you once again for your kind comment on my new hub. I was away on vacation with my hubby for a week so I haven't been here. I just saw your comment now with the others when I opened my laptop. I have a lot to catch up with. Thank you once again for you're always lovely comment. Yep, it was hard work paying off our mortgage but I think we have done the right thing and we are enjoying our own little home sweet home now.

    • liesl5858 profile image

      Linda Bryen 2 years ago from United Kingdom

      Hi! MizBejabbers, I thank you for your lovely comment on my hub about paying off your mortgage early. I realise that we all can't all pay off our mortgage early due to different reasons and I accept that. I am sorry to hear about your son's illness and your husband's poor health I hope that their health will improve soon. But you are right, paying off a mortgage is a dream come true for many house owners but sometimes we have to prioritise what is more important in our lives for the "now" or the future. We have to make the right choices for what ever suits our needs at present time. Thank you for your kind comment.

    • travmaj profile image

      travmaj 2 years ago from australia

      Hi again Linda, don't know what happened here. For a while there was no comment section on your hub. Then yesterday, I commented and shared but my comment doesn't seem to have reached your pages.

      Anyway, try again.

      I commend you and your husband for paying of your mortgage. It's not easy. You really meant business and got on with it. Such a complicated world where we are encouraged to spend, spend, spend. You really are remarkable to resist and I admire the steps you took to ensure you were debt free mortgage wise. We can all learn from your advice.

      I hope this comment 'works' Hope all is well in Uk - love the springtime.

    • MizBejabbers profile image

      MizBejabbers 2 years ago

      I'm sure it felt very good to pay off your mortgage early. I have one paid-for house simply because I wasn't able to sell it when we bought a larger home in a better neighborhood. I say "I" because it was premarital property, and it felt really good to pay it off after 30 years. My son, who is very ill now lives in it, so it was good that we didn't sell. After seven years on this home, we refinanced it on a 15 year loan because interest rates went down considerably, but the payments went up a little. We will pay it off two years early this year. The reason we chose not to do early payoffs on these homes is because, although we are concerned about the future, we also want to enjoy the "now". We live simply but comfortably and are not willing to sacrifice for a future that we may not have. All too often, I see somebody die before they can enjoy the fruits of their labors, and my husband has been in poor health for years.

      But I salute you for your choice and wish you many happy mortgage-free years! Very good explanation. Voted up ++

    • travmaj profile image

      travmaj 2 years ago from australia

      Linda hello, - I've looked at this a few times but there was nowhere to leave a comment. All seems to be sorted now.

      I commend you for paying off your mortgages. You and your husband have worked admirably, it's such a good feeling and saves so much money in the long run. But not many of us can do what you have done. It's not easy when there's so much to spend money on - it just seems to disappear.

      Some really good advice and a wake up call to many of us as to what can be done if we try to persevere as you have done. Thanks Linda - in case other people didn't have chance to comment I'll share this. Best wishes...