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5 ways to reduce your monthly mortgage payments

mortgage payments

Feel like you are paying out too much on your mortgage every month – here a few tips to help reduce your mortgage payments, saving you money.

Switch to a lower rate

Is your current lender actually offering you the cheapest rate available?  If you aren’t fixed into a rate i.e. you are on your lender’s Standard Variable Rate then you could simply switch to another provider who can get you a better deal.   A mortgage is likely to be your biggest financial outgoing, so it really is worth shopping around to try and find the best deal – switching could mean you saving hundreds, or even thousands of pounds over the term of your mortgage deal.

Speak to a mortgage adviser to help you get the best rate

There are literally hundreds of mortgage products available so it’s understandable if you are feeling daunted by the idea of trawling through all the providers to find a great deal.  By speaking to an independent mortgage adviser, the hard work is done on your behalf.   Whole-of-market mortgage brokers not only have access to all the deals you’ll find on the high street, but will also have access to deals that are held exclusively for intermediaries (brokers).   A mortgage broker will take into consideration not just your budget, but also the mortgage that is going to work best for your circumstances so it really can be worth using a professional.

If you’re looking for mortgage advice, click here.

Offer up a bigger deposit

Is this your first mortgage?  Then you’ll no doubt have spent time saving up for a rather large deposit as requested by your lender.   The more money you can offer as a deposit will typically give you access to lower interest rates, meaning you’ll pay less each month and could cut thousands off your mortgage over the full term.    Whilst it’s hard to find that initial injection of cash, it really could be worth it in the long run.

Pay your fees upfront

Some mortgages can come with hefty fees – make sure you take these into consideration when comparing deals.   Don’t be fooled into thinking one mortgage deal is better than another just because it has a lower rate of interest – if one has fees and the other doesn’t it could tip the balance.  If the fees are added to your mortgage, this could lead to you paying much more overall as you’ll be paying interest on this amount as well as the value of your house.  To avoid this, try and pay the administration fees upfront if you can afford to do so.

Ask for your house to be valued

When did you last have your home valued?  If your home has increased in value since you purchased it, you may be surprised at just how much difference this can make to your mortgage payments.  Lender’s often base their interest rates on LTV – that is, loan to value which is basically the percentage of your home’s value which you need to borrow from the lender.  The lower the LTV, the better interest rates you are likely to be offered.   If your house has gone up in value since you took out your last mortgage, this could have a significant impact on your mortgage. A new provider will do a home valuation as standard, it will be a condition of the mortgage offer – but if you are staying with the same provider it may be worth asking them to do a new valuation.

Click here to speak to a mortgage adviser today

The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of SO Media.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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