7 Smart Mortgage Moves That Could Save You Money
Whether your current mortgage deal is coming to an end or you're simply looking ahead, a little preparation can go a long way. Every year, we speak to homeowners who could have saved themselves money, stress, or both by starting the process earlier.
One thing we see time and time again is people being caught off guard, when their mortgage deal expiry date comes around.
When you've been on the same fixed rate for a few years, it's easily forgotten. Taking a few minutes to check your lender's online account, mobile app or recent mortgage paperwork can help keep you ahead of the game. This will give you plenty of time to explore your options
Here are seven practical steps that will allow you to be in the strongest position - when the time comes for your mortgage review.
1. Keep an Eye on Your Mortgage End Date
If you do not prepare the end date will quickly arrive leaving you with a small window to sort out your new rate.
As a rule of thumb, it's worth checking your mortgage lenders portal; app or paperwork to ensure that you hold the correct end date. This will give you the breathing room to consider your options carefully.
2. Start Looking Sooner Than You Think
Many homeowners assume they need to wait until their deal is almost over before exploring a new mortgage. In reality, getting advice early can often open up more opportunities.
The mortgage market can change quickly, and it always best plan accordingly.
3. Take a Close Look at Your Spending
Before applying for a mortgage or remortgage, it's always worth reviewing your monthly finances.
Most of us have a few direct debits or subscriptions that quietly leave our account each month without much thought. Reviewing your spending can help identify areas where money could be better used, particularly if you're preparing for potentially higher mortgage payments in the future.
4. Consider Whether Overpayments Could Help
If your mortgage lender allows you to make overpayments without penalty, it may be worth your consideration. This can alter your loan to value, meaning your mortgage balance to the value of the property and potentially give you access to better rates and overall mortgage deals and it can also lower the amount of interest you pay over time.
Of course, overpayments aren't right for everyone, which is why it's important to consider your wider financial goals before making any decisions.
5. Don't Underestimate the Value of Savings
While reducing mortgage debt can be beneficial, having accessible savings is equally as important.
Unexpected costs have a habit of appearing when you least expect them. Building up an emergency fund can provide a useful financial safety net and help you feel more confident about future mortgage commitments.
Even setting aside a modest amount each month can make a difference over time.
6. Get Organised Before You Apply
One of the easiest ways to reduce delays during a mortgage application is to have your paperwork ready from the outset.
Lenders will usually ask for proof of income, identification, bank statements and other supporting documents. Gathering these in advance can make the process far smoother and help avoid last-minute stress.
For self-employed applicants, ensuring accounts and tax records are up to date can be particularly helpful.
7. Check What Lenders Are Likely to See
Before submitting an application, it's sensible to review your credit report.
This gives you the opportunity to spot any inaccuracies, check that your personal details are correct and identify anything that could potentially raise questions with a lender. Simple steps such as keeping up with payments and ensuring you're registered on the electoral roll can all help strengthen your overall credit profile.
A Little Planning Goes a Long Way
Mortgage reviews don't need to be stressful. The homeowners who tend to have the smoothest experience are usually those who start preparing early, understand their finances and seek advice before deadlines become a concern.
By taking a few practical steps now, you'll put yourself in a much stronger position when it's time to secure your next mortgage deal.
