How to Pay Your Mortgage Off Three Years Early with Revolut
The beauty of financial planning often lies in the simplest strategies, ones that can yield significant results over time with consistent effort. Today, I want to share with you a straightforward way to save up to 3 years on your mortgage payments. Yes, you heard it right, up to three years!
All you need is a smartphone, the Revolut app, and your mortgage account IBAN details. Let me break it down into simple steps:
- Install the Revolut app on your phone.
- Create a “spare change Vault” within the app.
- Start using your Revolut card as your daily spending card.
- Each month, transfer the balance accumulated in your Vault directly to your mortgage account using the provided IBAN.
- Stay committed to this practice, and over time, you’ll start seeing your mortgage balance reduce significantly.
So how does this work? Let’s delve into the numbers a bit.
My wife, Ciara, and I checked our spending habits and found that we use our cards at least 70 times a month. The Revolut spare change Vault rounds up each sale to the next Euro, setting the spare change aside in the Vault. The Central Bank reports that the average card transaction is €45.47, which results in an average of .53 cents rounding up for each transaction. Multiply this by 70 transactions, and you get an extra €74.20 per month.
The average mortgage in Ireland last year was €284,623. If you’re paying this over 30 years, it amounts to a monthly payment of €1,467, assuming a rate of 4.65%. Now, if you consistently overpay your monthly mortgage by €74.20 (from the Vault), you could save a whopping €27,454 in interest alone and clear your mortgage 35 months earlier. That’s nearly three years of savings on life cover and monthly bank fees!
While I don’t arrange mortgages, I’m dedicated to giving valuable financial advice and working with you to ensure your financial plans and policies are suitable and working for you. If you want to get your finances on track and secure your future, drop me an email at Richard@ferrisfinancialplanning.ie or give me a call at 087 772 9268. Let’s start a conversation about your financial future.
