Is it Possible for Millennial Home Owners to get Mortgage Free?

Many millennials today are avoiding mortgages because they cherish the freedom that comes with living the “upwardly mobile” lifestyle. However, this is a dangerous path to toe.  By the time you turn 30 you might have spent £53,000 on rent. Wouldn’t you rather get on the property ladder with some of the rent as down payment?

Mortgages have been a drag for many millennials as many are worried about inability to meet up with their obligations, exorbitant interest rates and never truly getting mortgage free. With the right guidance, however, literally anyone can become mortgage free. Here are two main ways to do this:

Using your savings account

You may not know it but your savings account also holds the key to clearing your mortgage early and you don’t have to pay any extra cash. You only need to have a decent sum saved up.  This method is known as using an offset mortgage.  With this method, your savings account is linked to your mortgage account. The savings are then offset against your mortgage debt thereby reducing the mortgage amount and the interest that would have been paid on it.

You don’t lose access to your savings and you can add more money to the pot at any time to further reduce your mortgage debt.  It is important to note though that your savings pot used here will not grow. Savings account yield very little these days anyway so this shouldn’t be a deal breaker. Most big lenders offer this type of mortgage deal.

Embrace Overpayments

When you get a mortgage, you are allowed to overpay by a specific amount each year without any charges. Most of the time, this is no more than 10% of your mortgage balance. You will only be hit with an early repayment charge if you go above this limit.

So if you are able to, try to spend a bit more when researching a mortgage, and you can drastically cut down how long it will take you to become mortgage free. By increasing your mortgage by an extra £100, you can cut off 4 years of repayments from your mortgage and most importantly, save over £12,000 in interest for a £150,000 mortgage deal.  Don’t know how to squirrel away a bit more money for mortgage overpayments? Here are some tips you can work with.

With these two methods, you can become mortgage free as a millennial in little time.  You only need some level of discipline to see through any approach you elect to go with. All the financial experts are warning of how badly the millennial generation will be affected when they come to the age of retirement.

As older generations live longer, they require more money to pay for their care and this comes from the earnings of their kids and grandkids. We can expect to see more strain being put on the millennial generation throughout their working lives, so having a financial plan in place now will ensure that you’ll be able to enjoy your own retirement when it comes round.

Here’s How To Dig Your Way Out Of A Financial Pit

Unless you happen to be incredibly lucky, there’s a chance that you’re going to find yourself in a less than ideal financial situation at some point in your life. Sometimes it’s because of a sudden disaster; sometimes it’s a more gradual shift. Either way, it’s incredibly common for people to end up in a financial pit without any clear way of how to get out of it. When this happens, it can be an incredibly frightening experience. It’s all too easy to panic and assume that you’re going to stuck in this kind of situation indefinitely. However, that’s not the case. In reality is it entirely possible to dig your way out of any financial pit that you might have found yourself in. You’ve just to be willing to put in the time and effort to make it happen! With that in mind, here are a few simple yet highly effective ways to get your finances back on track.

Curb your spending

The most common reason that many people end up in financial trouble isn’t because of some major disaster, it’s often simply because they were spending more than they could afford. While this might sound like something that would be very easily avoided, it’s actually an incredibly easy trap to fall into. Far too often people forget how much a little bit of money here and there can add up until you’ve basically spent all of the money that you have. Because of that, when something does happen you don’t have the extra income to deal with it, and you start to fall into the dangers of bad debt and overdrawn bank accounts.

Supplement your income

If you’ve dealt with your spending, then you’re going to be in a much better position to avoid falling further and further into financial difficulty, but that doesn’t necessarily mean that you’re going to be able to pull yourself out. If you want to do that, then you may want to supplement your existing income. This could be by getting a second job, taking out a loan of some kind or using sites like to make some extra money on the side. Whatever you decide to do it’s important that you think of this money as the boost that you need to get yourself back on solid ground, not as more spending money.   

Reduce your bills (where you can)

Sometimes it’s a good idea to look at your general household bills and look at where you can make some reductions. If you’re in really dire straits, then you might want to think about moving somewhere with a lower rate of rent or mortgage payments. Otherwise, it’s worth looking at gas and electricity providers to see if you’re getting the most competitive deal possible. A lot of people just assume that they’re getting a fair deal on their utilities while, in reality, they’re paying for more than they need to out of little more than convenience. You won’t always be able to reduce those kinds of regular outgoings, but it’s certainly worth looking into since it could potentially save you a lot of money.

Found Your True Calling Yet? Don’t Worry, Most of Us Haven’t

How many times have you told yourself that you’ll be productive and learn a new skill, only to invest lots of money into something and ultimately forget about it? What did you tell your parents and your teacher when you were young and they asked what you wanted to be in the future? Did you say a firefighter? An astronaut? Or perhaps you said you aren’t sure.

Not everyone grows up with aspirations, and that’s perfectly fine—it’s common. Even now, some of the most interesting people you’ll meet are those that switch careers every year, the people who have hobbies that come and go, and those with skills in all sorts of fields.

Don’t lock yourself into a path

Far too many people use their monetary and time investment as a way to dedicate themselves to something. For instance, if you spend thousands on a grand piano and renovate a room to be soundproof so you can play it in peace, then you’ll force yourself to play that piano every single day. For some people, it works and they go on to become renowned pianists. Most people would just forget about it but still occasionally play it because they spent so much money on it. Others would completely give up and before long, another instrument or piece of equipment will replace the piano.

Saying that you’re convinced you want to become something will essentially lock you down that path. The more you tell people about what you want to become, the bigger their expectations of you, and the harder you’ll fall when you muster up the courage to tell them you want out. In some cases, that feeling of letting down the friends that supported you becomes too much to bear, and you’ll force yourself to continue despite hating it.

It’s fine to spend time searching

Don’t worry if you struggle to find a new hobby or career to chase. There are resources like Find Your Context that can be a huge helping hand in these cases. Not only will they give you a list of options to consider, but they’ll also teach you the quickest path to reaching it. It’s handy for when you have a sudden glimpse of inspiration and you want to capitalise on it as soon as possible by learning about a new subject.

Another great way to search for your passions is to write down a list of things that you really enjoyed when you were younger. Diving back into your past to find out what made you happy is a fantastic way to inspire yourself to learn something new or walk down a different career path. Maybe you loved watching cartoons when you were younger and you want to try drawing comics or animating. Perhaps you loved watching sports and you’re still young enough to train and become an athlete. There are plenty of different choices in life as long as you’re willing to make the change.

Final Words

In short, just because you haven’t found a calling like the rest of your friends or family members, doesn’t mean you will be any less successful or happy in your endeavours. Don’t lock yourself into a career choice you aren’t sure about, and take time off to reflect on your past and find something that truly makes you happy.