Paid off mortgage early

I'm in the process of paying off my mortgage early. I'm on course to be mortgage-free within five years - 12 years ahead of schedule.

I've done so by setting up a regular overpayment every single month (so I don't get tempted to spend the money on something more interesting), and by making lump sum payments out of my small business's profits, up to the maximum 10% overpayment allowance under my current fixed rate deal.

With the recent rise in interest rates, I'm actually putting these lump sums into a 90-day notice savings account, which pays almost 2% more than my fixed rate - meaning I benefit from arbitrage until my deal ends. At this point, I can apply an even larger lump sum, helping me be mortgage-free quicker.

Offset mortgages could be the answer if you receive large lump sums of money. In essence you have a savings account linked to your mortgage and the lender only charges you interest on the difference. The beauty of this is that if you need the money, you can take the money out. What a lot of customers will do when their remortgage is due is to use the cash in the account to repay a significant portion of their balance at a point where there aren't any penalties for doing so.

We have made a video on our YouTube channel providing tips on how to repay your mortgage early. https://youtu.be/4pMnot6SsU0