Do you want to live mortgage-free?
A life with no mortgage to pay – sounds amazing, right? It’s also a question that we get asked a lot, “Should I pay off my mortgage early?”.
Whilst this is a goal that many of us work towards to achieve financial freedom, it may not necessarily be the best way to approach and can have unintended consequences.
Why shouldn’t I prioritise being mortgage-free?
Focusing heavily on paying off your mortgage may lead to overlooking other debts and, when you look at the bigger picture, may not have as many benefits as you may originally thought.
Whilst it may be a significant debt, mortgages do commonly have lower interest rates than other debts, so shouldn’t be prioritised over those with higher rates.
The benefits of paying other debts first
There are two main reasons we feel you should consider paying other debts first:
- Interest – by the time you are mortgage free, you will have less debts overall and will have paid less interest in the longer term.
- Making mortgage payments easier – once you’ve paid off your other debts, you have more funds to put towards your mortgage, so you can still pay it off sooner than you may have thought.
This of course all varies depending on your personal circumstances, we would always recommend you take a look at all of your finances to see what works best for you.
If you’re not sure where to start with this, that’s what we’re here for! This process can be a bit of a minefield, so we will devise a strategy that meets the needs of your wider goals and priorities.
If you have any questions about your mortgage or general debt payments, please don’t hesitate to get in touch with us here.
