How to save money on your Mortgage?

01 Nov 2019

How to save money on your Mortgage?

Never get stuck on the lenders Standard Variable Rate

An applicant never wants to get stuck on the lenders standard variable rate especially now that rates are at an all-time low and lenders are providing cracking rates on their fixed products. Fixed rate products could save applicants hundreds of pounds per month but they only last for a certain period of time. When the fixed rate product ends applicants end of slipping into the lenders standard variable rate (SVR). As lenders set their own standard variable rates you could see your monthly mortgage payments shoot up. This is due to SVR’s being quite a bit more expensive that a fixed rate deal. Speak to a Mortgage broker about the rate that you are on and see if you can save money on your mortgage.

Re-mortgage your home and get a better deal.

It may be worth re-mortgaging your home. In doing so you can shop around for the best deals available in the market especially if you speak to an independent mortgage broker who can advise you on the whole of the market and get the best deal available to you. Revolution Finance Brokers is completely independent and we have an up to date and easy to use comparison service on our site to make searching for the best deal as easy as possible. We also have a dedicated phone service team who will endeavour to get the best deal available for you.

Put a bigger deposit down and improve your LTV (Loan to Value)

Lenders will calculate the amount of interest to charge based on the Loan to Value of the property. The lower the Loan to value the lower the interest rate will be. For example if you put down a deposit of 10% you will generally be looking at a higher interest rate than say someone putting a deposit of 40%.  The pricing between the interest rate thresholds can be quite substantial so paying a bigger deposit and moving from 90% LTV to an 85% could potentially save you thousands of pounds.

Make Overpayments

Making overpayments may not sound as a way of saving money on your mortgage, you will be giving up your disposable income but in doing so you will be paying off your mortgage a lot quicker thus saving thousands of pounds as it reduces the amount of interest that you owe. Most lenders allow applicants to make 10% overpayments per year, in affect you can pay 10% of your loan and significantly reduce the amount of interest to be paid.

Get Expert Mortgage Advice

Get sound and tailored advice that will suit your mortgage needs from an independent mortgage advisor. We ensure that all our clients get the right mortgage product that suits their individual needs. We are not a ‘one size fits all’ company. We provide individual mortgage advice.

Contact us now to discuss your personal options, Revolution Finance Brokers specialise in commercial and residential finance in Essex, Kent, London and Hertfordshire.

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Almas Uddin

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.