Are you trying to buy a new home or simply want to reduce your current mortgage costs? Either way, you’re in the right place. In this article, we’re going to look at some key tips to help you get the most affordable mortgage possible for you and your family.
With over 11 million mortgages in the UK alone, it’s a huge industry. What that means for you is that you can get some great deals and good rates if you know where to look. Keep reading to find out how to save on your mortgage.
Renegotiate A Longer Mortgage
If you’ve already got a mortgage but are having trouble making payments or would just like to see if you can make things a bit more affordable, you might be surprised to find out that you have a few options.
Many lenders don’t really like the idea of your defaulting on a loan and losing your home. It’s a lot of work for them, and they’d rather you just carried on paying off your mortgage – even on slightly different terms. Try reaching out to your mortgage provider and asking to re-arrange your mortgage terms, especially over a longer period. The longer your loan lasts, the less you should have to pay each month.
It’s an affordable way to stay in the same home and pay less each month without any major up-front impact. If you don’t ask, you won’t know – so chat to your lender to see how flexible they are.
Pay A Bigger Deposit
This will only really work if you’re in the market for a home and mortgage rather than if you already have one, but paying a bigger deposit can get you much better terms. Not only will your lender be able to offer you a better deal, but you’ll also have much less left to pay for the same value property. A bigger deposit could be a direct route to more financial freedom in the long-run.
Fix Your Rate
The problem with many mortgages is that they’re on standard variable rates. These might seem like a good idea in some circumstances, but that’s not always the case. Try and lock yourself into as low a fixed term as you can, for as long as possible. Then you won’t be at the whim of market fluctuations. You might also want to make the most of introductory fixed rates to get an even better deal. Fixing your rate early can be one of the best ways to reduce mortgage payments.
Shop Around For The Best Deal
Don’t sign up to the first lender you find. There’s so much choice out there these days that a bit of research is needed to find the best deal.
Overpay When Possible
As long as you don’t have exorbitant overpayment fees (which some mortgages have), you’ll want to overpay whenever you can afford it. This will put you in a much better position overall and leave you with less to pay further down the line.
Finding the right mortgage with the right terms is an important decision. Have you had trouble getting a mortgage and made the most of one of these tips? Let us know as we’d love to hear more.