How To Clear Your Mortgage

2008: Fix - Ruspoli

If you thought interest rates were low and can only go up, then give a thought to HSBC’s new 5 year and 7 year fixed rates. These have been set at just 2.99% and 3.99% respectively. This gives an indication of what HSBC think will happen to interest rates. The rates are available to those with 40% equity in their home. If you have a mortgage, it is worth reviewing it with a mortgage broker who should be able to source a suitable rate and product for you. I’m not a mortgage broker (way too stressful for me). However, we provide a debt elimination programme for clients. Typically this is a properly put together plan to clear your mortgage (and any other debt) over a short period of time, certainly much shorter than the original mortgage schedule.

Clients tend to be in one of three programmes (unless they are a business owner, where things are a little more complex and certainly different). In essence the service we provide depends on your life stage, by that I mean financial life. This is debt elimination, wealth accumulation and finally wealth preservation. Now, there may be some overlap, but in general the overarching goal or focus will be on the associated stage.

A mortgage is a big commitment, clearing it feels very liberating and can open up new possibilities for you – perhaps changing your role or even your job, now that you don’t have to pay a mortgage each month. I also encourage clients to regard their house as a home, not as an investment. It doesn’t form part of their portfolio. Indeed it only ever could if equity is released from the house, either due to selling and moving to a less expensive property or using an equity release scheme, which is generally an action of last resort and only available to those in retirement.

So if you would like to know more about our debt elimination programme, get in touch (it is not debt counselling). If you want your mortgage reviewed, I can put you in contact with a great mortgage broker.