Simple Ways to Pay Off Your Mortgage Faster 

Want to pay off your mortgage quicker and save thousands in interest? With a little planning and consistency, it’s easier than you might think. Here’s how you can chip away at your mortgage and own your home sooner. 

1. Know Your Bank’s Rules

Every mortgage lender has different rules about making extra payments. Some lenders allow limited overpayments on fixed-rate mortgages without penalties. Others require a full restructuring of your mortgage if you wish to make overpayments, which can be inconvenient and less flexible. 

Certain lenders offer limited flexibility for overpayments on fixed-rate mortgages, restricting your options. However others provide significantly more freedom, which can reduce the term of your mortgage by several years and result in substantial savings. 

2. Pick a Strategy That Works for You

The type of mortgage you have—fixed, variable, or tracker—affects how easily you can overpay: 

• Fixed Rate: While fixed rates offers security, some lenders restrict the amount you can overpay your mortgage. It’s important to check with your provider the restrictions on overpaying your fixed rate. 
• Variable or Tracker Rates: These are much more flexible than fixed rates. You can pay extra whenever you want without worrying about penalties as your rate is not locked into a specific rate or term.  

3. Pay a Little Extra, Regularly

You don’t need to make huge payments to make a difference. Small, consistent overpayments can add up over time: 

• Add a Bit Each Month: For example, paying €150 extra on top of a €1,500 monthly repayment can make a big dent in your mortgage balance and reduce the interest you’ll pay. 
• Make a Lump-Sum Payment Each Year: If you can afford it, put some savings or a bonus toward your mortgage once a year. Just one extra full repayment annually can cut years off your mortgage.  

4. Automate Your Extra Payments

Life gets busy, so set up automatic extra payments to stay consistent. Whether it’s €50 or €150 a month, automating it means you won’t forget or skip a month. 

5. Use a Mortgage Calculator

Online mortgage calculators are handy tools to show how much time and money you can save by making extra payments. Seeing the impact can be really motivating! 

Why Overpaying Matters 

When you pay extra, you chip away at your loan balance faster. This means you’ll pay less interest over time. For example: If you took €200,000 mortgage with a 3% interest rate with 25 years remaining on the term, by paying just €150 extra a month could save you over €16,000 in interest and shorten your mortgage by several years. * 

Final Thoughts 

Paying off your mortgage early doesn’t have to mean big sacrifices. Start small—whether it’s an extra €50 or €150 a month or one extra payment a year—and you’ll make a big difference over time. Don’t wait – start your journey to being mortgage-free now!

*Source: CCPC