How to Save on Your Mortgage: Simple Strategies That Work

If you’re paying a mortgage, you’re probably looking for ways to trim that monthly bill. The good news? You don’t need a finance degree or magic tricks. A handful of practical steps can shave pounds off your payment and even shave years off the loan term.

Shop Around for the Best Rate

The first thing most people overlook is that mortgage rates can vary wildly between lenders. A difference of just 0.25% can mean hundreds of pounds each year. Use comparison sites, call a few banks, and ask about any special offers for first‑time buyers or existing customers. When you get a quote, ask the lender to break down the Annual Percentage Rate (APR) – that’s the real cost after fees.

Don’t forget to check if the lender offers a “no‑fee” deal. Sometimes a small arrangement fee can be worth it if the rate drops enough to offset it. Make a spreadsheet, plug in the numbers, and see which option gives you the lowest overall cost.

Boost Your Credit Score Before You Re‑mortgage

A higher credit score signals lower risk to lenders, and they reward you with better rates. Pay off any lingering credit‑card balances, keep your credit utilisation under 30%, and avoid opening new accounts a few months before you apply. If you’ve missed a payment in the past, a few months of on‑time payments can improve your score quickly.

Check your credit report for errors – a wrong entry can ding your score for no reason. Most UK credit agencies let you correct mistakes for free, and fixing them can boost your rating by several points.

While you’re at it, consider a short‑term fixed rate for the first year. It gives you time to improve your score further, then you can switch to a longer, lower‑rate deal.

Overpay Smartly

If your mortgage allows overpayments without penalties, use that feature. Even an extra £50 a month can cut years off a 25‑year loan and save you thousands in interest. Set up a standing order so you don’t have to remember each month.

Target the highest‑interest portion of your loan first. With a variable‑rate mortgage, overpaying when rates are high can lock in a bigger saving.

Consider Remortgaging

Remortgaging isn’t just for people who’re moving house. It can also be a tool to lock in a lower rate or switch from a variable to a fixed deal. Before you start, calculate the total cost of switching – exit fees, valuation fees, and legal fees can add up. If the total savings over the next few years exceed those costs, it’s worth it.

Watch for government schemes like the Help‑to‑Buy mortgage guarantee or the First‑Time Buyer relief. They can give you an edge on rates or lower the deposit required.

Stay Informed and Review Regularly

Mortgage markets change, and rates that seemed high last year might drop tomorrow. Set a reminder to review your mortgage every 12‑18 months. Even if you’re happy with your current deal, a quick check could reveal a better option.

Join a forum or follow a trusted UK finance blog. Real‑world tips from people in the same boat can point you to hidden deals or tricks that big banks don’t advertise.

Saving on your mortgage isn’t a one‑time event; it’s a habit. By comparing rates, polishing your credit, overpaying when you can, and staying alert to remortgage opportunities, you’ll keep more money in your pocket and bring that mortgage closer to the finish line. Start with one small change today – the savings will add up faster than you think.