However, there are some useful principles and considerations to take into account when weighing up the precise time frame and manner in which to pay off your mortgage. Let’s examine some of those in turn:
#1 Do you have the money?
It sounds like a simple point, but it’s an important one. If you have paid off £200,000 on your home and have £80,000 left to pay off, do you actually have the money in hand to pay off the outstanding amount (and cover any other relevant fees/taxes which may be involved)?
Assuming you do have the money, it’s crucial that you consider how spending this money on paying off your property will affect your overall financial health.
If spending £80,000 effectively leaves you with no other savings, then you need to consider how you and your family would cope in a situation where you need a financial reserve, but do not have one.
Sometimes expensive surprises come our way, such as replacing a broken boiler or booking an emergency flight, and it pays to be ready with an emergency fund. As a guiding principle, try to aim to build a minimum savings pot containing three months’ worth of living costs to help cover you in these sorts of scenarios.