What is the most efficient way to pay off £110k 30yr term mortgage as quick as possible?

LiveOnce

Hello all,

I am trying to understand how to pay off mortgage quickly.

Let's say for scenario you have £110k mortgage left over a 30yr term and you are making the 10% lump sum overpayments every year.

How can someone pay off the £110k in a short amount of time as possible without penalties?

Mickyh-s

My mortgage, (Coventry) lets me pay off as much as I can afford a year with no penalties. Therefore, this will enable me to pay it off earlier than your 10% a year. Maybe when your fixed rate has come to an end, look into a lender that has no restrictions.

wishingthemortgaheaway

Or, fix as low as you can for 2-3 years, make the 10% overpayments each year, then stick the rest of the money you can save in a high interest account. When the fixed rate ends, drop onto the svr for a couple of weeks, make a payment of whatever is in your overpayment account and then refix in a shorter term.
(This works if you want the security of knowing what your minimum payments will be for a period of time )

Begsey

When you remortgage at the end of a fixed rate, take as many years off the term as you are comfortable with.
As we had been overpaying for a couple of years, we've just switched lender and took 5 years off the term. Our new payment is less than our previous payment+overpayment, and we'll probably overpay again for the length of our 3 year fix.