Low mortgage rates mean early freedom for many

28 May 2009 / by Rebecca Sargent
Lower mortgage interest rates, coupled with clever mortgage moves, are allowing one in 10 homeowners to pay off their mortgage early, research from first direct has revealed.

The study found that almost a quarter of homeowners are on course to pay off their mortgage in the next ten years, and this figure could rise to 35 per cent with smart money management.

In fact, the average time between first house purchase and outright ownership has fallen by two years in the last decade – now standing at 30 years.

As the economic crisis continues to strike households, the research also found that more than 80 per cent of home owners are hoping to pay off their mortgage early, the majority aiming to shave three years off the term.

Commenting, first direct spokesperson Jimmy Kelly said: "The aspiration to reach freedom day as early as possible has never been stronger.

"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.

"By making sound financial decisions and choosing a flexible mortgage such as an offset, freedom can be closer than ever before," he added.

Finally, the research found that women are more ambitious about bringing forward freedom day than men – aiming to shave off an average of 3.3 years compared to men who want to shift an average of 2.6 years.

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