UK homeowners are being urged to think creatively about paying off their mortgages, with one money expert suggesting a plan that could save them £25,000 or more. Sarah Tucker, known as the 'Mortgage Mum', has devised a method that requires just £30 a month from homeowners to pay off their loans in style.
According to Rightmove, the average UK house price currently stands at £293,000, with the Halifax reporting that the average mortgage is approximately £170,000. This means that homeowners who opt for Sarah's plan could potentially save thousands of pounds in interest over the life of their mortgage.
The Mortgage Mum's plan involves paying off more than the minimum monthly payment each month, and utilising any available lump sums to reduce the outstanding balance. This approach can help homeowners pay off their mortgages more quickly, saving them money in interest payments and potentially freeing up more money in their monthly budget for other expenses.
Rightmove data shows that in some regions of the UK, such as London, the average house price exceeds £600,000, while in other areas, such as the North East, the average price is around £170,000. This means that Sarah's plan could be particularly beneficial for homeowners in regions where house prices are higher.
However, it's worth noting that understanding mortgage rates and stamp duty is crucial for this plan to work. Homeowners will need to carefully consider their individual circumstances and mortgage terms to determine whether this approach is right for them.
Overall, Sarah's plan has the potential to benefit first-time buyers, landlords, and existing homeowners alike, by helping them pay off their mortgages more quickly and saving them thousands of pounds in the process.