4 tips for mortgage money saving
A mortgage is one of the most expensive commitments many of us will ever take out, but even some of the savviest households fail to consider cutting the costs of their mortgage. Our mortgage advisers have shared four ways you could save – follow these tips to see if you could save big.
1. Beware standard variable rates (SVRs)
Most lenders offer a standard variable rate mortgage (SVR). These rates are set by the lenders and – although they offer a degree of flexibility – they typically charge high interest rates that vary at the will of your lender. Beware: if you once enjoyed a fixed rate deal and haven’t since switched, you are probably now on an SVR. Our message to you is vote with your feet, switch and you could save money.
2. Remortgage for a better deal
It’s a no-brainer: mortgage repayments are one of the most expensive monthly outgoings and huge savings are available. It pays to find the best deals and most people can remortgage their home.
3. Regularly overpay your mortgage
Most borrowers will be free to overpay their mortgage by 10% per year, but check with your lender to make sure you won’t be penalised with early repayment charges.
4. Consider an offset mortgage
Following the Bank of England’s decision to cut the base rate to 0.25%, savings interest rates are incredibly low – often lower than the interest paid on your mortgage. If you have surplus savings, you may want to consider an offset mortgage
If you’d like to discuss these options further, call one of our advisers on 0808 292 2495.
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