So as the cost of living in the UK continues to head upwards, many of us will be looking at where we can make savings and free up some extra money.
Mortgage payments are a good place to start, as many of us could be on a much better rate or a cheaper deal.
Of course, the mortgage market is complex, with countless different options open to you. So it’s well worth speaking with a mortgage broker with expertise in this area, who can guide you through this maze and point you in the right direction – this blog is not advice just some ways you COULD save money if done correctly.
This is usually higher than the rate you can get with a new deal, so if you switch to a new fixed rate offer, you could potentially save thousands of pounds on your mortgage payments.
If your circumstances change in the future and you’re able to pay more later on, you could possibly reduce your term again, but you’ll need to discuss this option with your mortgage provider.
If you research the market and compare rates, you could find big savings are there to be made, particularly if the value of your house has gone up since you took out your original mortgage. But don’t forget to bear in mind extra costs such as valuation and product fees and Early Repayment Charges, and factor these into any calculations of how much money you could save each month.
You can still access your savings, but be aware that your mortgage payments will increase again if you dip into them at any point. You may also have the option of linking up with friends or family savings, so they can help you while keeping hold of their own savings, depending on which mortgage provider you go with.
It’s all about planning ahead and could massively pay off in the long run. But remember that some mortgage providers and products might have a limit on the amount you can overpay. So always speak with your mortgage broker for advice before increasing the amount you’re paying.
