Offset the debt
With an offset mortgage debt, you can use your savings to make money – the only debt that can leave you richer. By offsetting savings against the mortgage debt each month, you lower the rate. So more savings means a cheaper mortgage, which in turn allows you to save even more. No other loan can offer you the sort of saving incentives that an offset mortgage can.
Invest and grow
Mortgage debt, when paid back over time, helps you invest and grow. Although house prices are stalling right now, the UK is still on the top of a massive house price boom – a boom that has allowed people to make huge profits while dealing with their mortgage debt. And of course every mortgage payment helps towards paying off the debt and owing more of your home’s equity. It’s your pension, your nest egg and your rainy day fund – all fuelled by your mortgage debt.
Because a mortgage debt is your debt, it can be used however you like. If your debts grow in other directions, you can use your mortgage to get hold of large amounts of cash to pay off your other responsibilities. Using the equity in your home as a secured loan or a remortgage means you just have the one debt – your mortgage debt. It saves money and it gives you the opportunity to move on, debt-free.
Use the debt
A mortgage debt becomes a badge of honour in the eyes of lenders – by taking on a mortgage you are announcing you can handle a large, regular debt every month. That is recorded on your credit score and it will allow you to take out further finances in the future – credit cards, car loans and even insurance is all defined by your mortgage debt.
Paying off the mortgage
Of course, no matter how good a debt is, it is better to be debt-free at some point in life. And with a mortgage debt, becoming debt-free is wholly achievable. Use the debt to clear others, use the debt to save money and use the debt to work for you. A mortgage debt needn’t be a burden, it can be a vehicle for saving, earning and investing for you and your future.