‘Saving could cut mortgage term by six years’

Homeowners are being alerted to new research which suggests that becoming mortgage-free “need not be an impossible dream”.

According to The One Account, the average yearly bonus earned by UK homeowners is £1,550.05, which, if saved, could help reduce a mortgage term by approximately six years.

It was also discovered that 26 per cent of people plan to use their bonuses for this purpose, which can help decrease the amount of interest paid on a mortgage and therefore reduce the time period over which it lasts.

The One Account’s spokesperson, Debbie Milsom, recommends linking a current account to handle mortgage payments – providing opportunities all year round to reduce a mortgage term.

“Having your current account working for your mortgage provides flexibility,” she said.

“Shrink your mortgage, not your dreams.”

The One Account offers a range of financial services including tips on how to how to reduce mortgage terms.

© Adfero Ltd

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