Couple cleared Banbury mortgage seven years early with overpayments
Adrian and Tulay Massey paid off their mortgage in 2021, seven years ahead of schedule, after Adrian’s redundancy made the debt feel like a heavy burden. Their experience illustrates how overpayments can cut interest and shorten a mortgage, though paying it off early may bring personal freedom as well as financial savings.
They bought their Banbury home for £280,000 and initially paid about £1,400 a month at 6.1% interest. They added £500 a month, put pay rises towards the debt and sometimes made lump-sum payments; refinancing at 2.5% in 2013 helped their overpayments go further. On a separate £200,000 mortgage at 5% over 25 years, Moneycomms estimates that paying an extra £20 monthly could save £5,700 in interest and clear the loan nine months early; £100 extra could save £24,530 and cut three years and six months off the term.
In short
- The Masseys cleared their mortgage seven years early.
- Regular overpayments can reduce interest and shorten the term.
- A £20 monthly extra could save £5,700 on a sample loan.
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Originally published by The Guardian as “‘We were mortgage-free at 45, here’s how you can do it too’”.