How to Cut your Monthly Mortgage Payments

How to Cut your Monthly Mortgage Payments

If you have a mortgage then you will know how important it is for you to keep up with your payments. After all, if you don’t then you may have to give up your home and you may even find that it is much harder for you to get a mortgage in the future as well. If you want to get all of this sorted out then you are more than in a position to do this.

Don’t Stay on Standard Variable Rates

So many people make the mistake that a lot of mortgage borrowers make. They stay on the same variable mortgage even after the tracker or fixed rate. When you take out an SVR mortgage the provider will decide their own interest rates and they will also be very high as well. This is how mortgage lenders are able to make their profits and it is how they are able to fund such cheap introductory deals. If you have an SVR mortgage then you are paying way more than you need every single month and if you want to stop this then you need to shop around and make sure that you are getting a deal that is going to serve you for the long-term instead of the short-term.

Overpay when You Can

If the interest rates are good then this shows that now is the time you need to be overpaying on your mortgage. When you pay off more from your mortgage you can easily be in a much better position when the interest rates start to rise and this can put you in a great situation. Low-interest rates ultimately mean that your mortgage payment is less and this gives you way more capital and flexibility. It helps to check with your lender to try and find out if there are any penalties when you pay off your mortgage and to also make sure that you have some funds put away for a rainy day as well. Of course, if you know that you are finding it hard to stay on top of your mortgage repayments or if you need some money from your property then it may be worth you looking into an equity release calculator. When you are able to do this, you can save a ton of money and you can also get a lump sum right now as well so this can help you to make better decisions for the future.

Switch to Another provider

If your lender is not giving you the cheapest rate then you may have to pay your lender administration fees if you switch. It is always a good idea for you to sit down and work out if this is going to save you money or not because you would be surprised at how much of an impact this can have on your finances. If it turns out the money you save by switching is going to cover your penalty fees then this is well worth doing and you’d be surprised at how much this can really help you to help yourself in the future.

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Written by themoneyshed

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