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Mortgages being paid off sooner than ever

Mortgages being paid off sooner than ever

Category: Mortgages

Updated: 27/05/2009
First Published: 27/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savvy homeowners are taking advantage of low interest rates to pay off their mortgages in record time.

More than one in nine (11 per cent) homeowners stand to pay off their mortgage early by taking advantage of current market conditions, according to research from first direct.

Record low interest rates and smart mortgage moves are helping homeowners bring forward the day when they no longer have a mortgage hanging over their head, or 'freedom day' as it has been dubbed.

A quarter (24 per cent) of mortgage holders are currently on course to pay off their mortgage within 10 years. Meanwhile, the average time between a first house purchase and outright ownership has fallen from 32 years a decade ago to 30 years in the current economic climate.

"Although first time buyers are entering the market later than ever before - the average Briton now steps on to the housing ladder at the age of 34, compared to 29 in the 1970s - the aspiration to reach freedom day as early as possible has never been stronger," said first direct spokesman, Jimmy Kelly.

"For many, a mortgage represents the biggest debt they will ever have. The typical householder will have five mortgages over their lifetime, which is a massive commitment. But by making sound financial decisions, freedom can be closer than ever before."

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