- Better Borrowing (215)
- Credit History & Credit Future (30)
- Ditching Debt (41)
- Household & Family (177)
- Income & Work (60)
- Money & Finance (168)
- News (90)
- Property (52)
- Top Tips (106)
- Video & Infographics (30)
For most of us, a mortgage payment is one of the biggest monthly expenses we face. So, anything that enables that cost to be reduced is worth looking into. Whether you’re struggling to make your mortgage payments, or you’re keen to release more of your monthly income for other things, there are steps that you can take to help bring the cost of your borrowing down.
If it’s an option for you to increase the term of the mortgage to a longer one then you’ll be able to pay less each month. This may depend on a number of factors, including age and income. It’s worth enquiring with your existing provider about whether this is possible and also looking at other deals with longer terms. But keep in mind that you may pay more interest in the long run by doing this.
Interest rates are currently very low, which makes this a great time to start making over-payments on your mortgage. If rates do start to go up in the near future any mortgage you have outstanding could increase in cost, depending on the rates deal you have in place. If you’ve overpaid on your mortgage now then you’re cutting the cost of what you’ll have to pay that increased interest on in the future.
You may find that when you come to remortgaging there are many more attractive deals out there than the one you currently have. If you’re looking to use a remortgage to cut your monthly costs you’ll need to:
Fixing mortgage rates for a specific period of time can help protect your finances if interest rates do go up. However, this protection does tend to come at a premium i.e. you’ll pay more for it. Although no one knows what interest rates are going to do, a tracker rate – i.e. an interest rate that changes with the bank base rate – may work out cheaper for now. Just be aware that if interest rates go up your mortgage payments will too.
For those who are currently trying to find a mortgage, you can reduce how much this costs you by:
If you want to cut the cost of your mortgage – whether you already have one or are currently looking for a deal – there are lots of ways to do it. Improving your financial position will always give you an advantage when it comes to dealing with lenders, whether that’s working on your credit score or overpaying on your existing mortgage.
Amanda Gillam is Solution Loans's General Manager and has been since 2009. She is also a prolific writer on personal finance issues, and has been quoted numerous times in articles published on 3rd party websites and in press releases. Her...Read about Amanda Gillam
|This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
|The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
|This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
|This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
|This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".