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Cut the cost of your mortgage in the long-term

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1) Make overpayments
Overpaying will significantly reduce the amount of interest you have to pay throughout your mortgage term, saving you thousands over the long term. Contact your lender to alter your repayments. Most lenders allow you to overpay by 10% a year without penalty. This also helps you build up your equity to protect you from negative equity.

2) Pay your fees upfront
If you add your fees to your mortgage, you’ll pay interest on them for the rest of your mortgage term – which will cost you more overall. When you take out a new mortgage, pay the fees upfront and eliminate this cost.

3) Remortgage when your deal comes to an end
When the initial period of your mortgage finishes, don’t just sit on the Standard Variable Rate – shop around for a new, cheaper deal. However, don’t remortgage too early as you will be hit with early repayment charges which could total many thousands of pounds.

4) Go for a long-term deal
If you go for the stability of a longer-term mortgage, say for five years, then you will not only save the hassle of shopping around for a new deal every couple of years, but you will also avoid the arrangement fees you would have to fork out for the new mortgage.

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