Becoming mortgage-free is a dream for many people. According to IFA Magazine (15.10.2025), one in six first-time buyers hope to clear their mortgage by the age of 40, while 68% said that paying off their mortgage was more important than boosting their pension plan. 

As a long-term debt, a mortgage can stir strong emotions, including pressure from carrying such a large financial obligation. This pressure can lead to chronic stress, sleep issues, and anxiety. 

Even if your mortgage is just ticking away in the background, the financial freedom of paying it off and owning your property outright is a strong incentive for many people. 

Read on to discover five ways to become mortgage-free faster. 

There are several wellbeing and financial benefits associated with paying off your mortgage

Mortgage payments can sometimes feel never-ending, especially if your term exceeds the standard 25-year period. Plus, the monthly payments don’t always reduce your remaining debt as much as you might expect, as interest will often form a large part of your payments.

It’s therefore understandable that becoming mortgage-free is an aspiration for so many people, offering benefits for both financial and mental wellbeing. 

In fact, Understanding Society (31.08.2025) cites University of Cambridge findings that transitioning from having a mortgage to outright ownership is associated with the largest improvement in mental health and can pay dividends for your future mental wellbeing. This effect is greater than the change from renting to mortgaged ownership, which can sometimes negatively affect mental health. 

Owning your property outright can give you peace of mind, dissipating any fears of having to leave your home if you lose your job. It can represent a strong psychological shift as you move from consistently making monthly payments to feeling the freedom of being an outright homeowner. 

There are many financial benefits, too. You likely use a significant amount of your income to pay your mortgage, freeing up that money once the mortgage is cleared. Plus, clearing your mortgage means you’re no longer burdened with debt and interest payments. 

It can also give you a much stronger platform for your retirement planning, as you won’t have to factor in monthly mortgage payments. Plus, when it comes to estate planning, you’ll be able to pass the full value of your property to your beneficiaries without them having to settle outstanding mortgage debt first. 

5 ways to move towards becoming mortgage-free

1. Create a realistic plan

The first step to being mortgage-free is assessing your current situation. This could include checking: 

• Your existing balance
• The interest rate on your mortgage
• The remaining term
• Whether overpayments will attract a penalty
• Your income, outgoings, and savings. 

You can then find the best route for clearing your mortgage and decide whether you could do so faster. 

2. Shorten your mortgage term

One of the key advantages of shortening your term is that you’ll save a significant amount in interest payments. 

Consider this example: 

If you have a £250,000 mortgage at a 4.5% interest rate, your monthly repayment will be £1,389 and you’ll pay £166,711 in interest over a 25-year mortgage term. 

Change your term to 20 years, and your monthly repayment will be £1,581, with a total interest of £129,466.

That’s a saving of £37,245 in interest payments in total.

This method will also help you build up equity in your home faster, as you’ll own a greater portion of your property sooner. 

However, you’ll need to make larger monthly repayments to meet a shorter mortgage term, which is where your planning will come into play. This will only be an effective option if it’s affordable for you. 

3. Make overpayments

Making overpayments on your mortgage can help you clear the debt faster. The conundrum here is whether it’s more beneficial to overpay on your mortgage or save the money elsewhere. 

If your mortgage rate is the same or higher than your savings account rate, overpaying may be the better option. 

You’ll need to check what the rules are around overpaying on your mortgage. For example, most fixed-rate mortgages allow you to overpay 10% of your outstanding balance annually without penalties. If you’re on a variable-rate mortgage, you can generally overpay as much as you like. 

Take care not to go over your lender’s established overpayment limit, as you may incur penalties. 

4. Remortgage to secure a better interest rate

When you come to the end of your current deal, your lender will typically automatically move you onto their standard variable rate (SVR). This is usually higher than other deals available and the lender may increase it throughout the term, so the sooner you move to a better rate, the better. 

You can usually reduce your monthly payment straight away by securing a deal with a lower interest rate. 

Just be aware that if you try to remortgage during your current deal’s term, you’re likely to be liable for an early repayment charge (ERC), as well as an exit fee. Therefore, it can often be more beneficial to wait until it’s time to renew. 

5. Use an offset mortgage to reduce interest

An offset mortgage links your savings to your mortgage so your savings balance is offset against your mortgage debt instead of earning interest. 

For example, if you have a mortgage of £150,000 and available funds of £20,000, you’ll only be charged interest on £130,000 of the debt. You can still access the money in your savings account. 

This means that you’ll pay less interest and can clear the capital on your mortgage faster. This type of mortgage can come with higher rates or fees, however, so it’s worth doing some due diligence to check if it’s right for you. 

Please note:  This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.