If you’re looking to lower your mortgage payments, here are seven effective strategies that could help you secure a better rate and save you money over time.

1. Compare Mortgage Deals to Save Thousands Annually

Exploring different mortgage offers can lead to substantial savings. Many homeowners stick with their current lender without considering other options, but by comparing deals from multiple lenders, you can find significantly better rates. On average, switching mortgages could save you nearly £400 per month, which amounts to over £4,700 per year!

2. Boost Your Deposit to Lower Your Interest Rate

A higher deposit often means a better deal on your mortgage. Lenders usually offer more favourable rates when your loan-to-value (LTV) ratio is lower. For example, a mortgage with a 60% LTV could have a lower interest rate than one with a 90% LTV. By increasing your deposit, you can reduce your LTV and potentially save on interest.

3. Improve Your Credit Score for Better Offers

Lenders assess your credit score when deciding which rates to offer you. Generally, the higher your credit score, the lower the interest rate you’re likely to receive. If your credit score is in a ‘fair’ range, improving it could unlock better mortgage deals. Simple steps like paying bills on time, reducing debt, and correcting any errors on your credit report can help boost your score.

4. Choose a Green Mortgage and Save

If you’re considering an energy-efficient home, you may qualify for special mortgage deals with lower rates or cashback incentives. For instance, some lenders offer reduced rates for homes with high Energy Performance Certificate (EPC) ratings. Additionally, certain banks offer cashback rewards for purchasing energy-efficient properties, which can further reduce your mortgage costs.

5. Plan Ahead for Remortgaging and Avoid High SVR Rates

It’s crucial to plan ahead when your current mortgage deal is nearing its end. If you remortgage early, you can avoid the higher standard variable rate (SVR) your lender may charge once your deal expires. By starting the remortgaging process six months in advance, you give yourself enough time to lock in a better rate and avoid the current average SVR of 8.44%.

6. Consider a Lifetime Tracker Mortgage for Flexible Savings

A lifetime tracker mortgage might not offer the lowest initial rate, but it adjusts in line with the Bank of England’s base rate. If interest rates drop, your payments will decrease accordingly. These mortgages often allow you to switch deals without exit fees, offering flexibility to take advantage of future rate reductions. However, keep in mind that if base rates rise, so will your payments.

7. Opt for a 5-Year Fixed Rate for Stability

If you’re looking for a balance between long-term stability and competitive rates, a 5-year fixed-rate mortgage might be worth considering. At present, longer-term fixed rates are often more attractive than shorter-term ones. While locking in a rate for five years can provide peace of mind, be aware that you could miss out on savings if interest rates drop significantly during that time.

Ready to lower your mortgage payments and secure a better financial future? Contact IMC Financial Services today for expert advice and personalised mortgage solutions. Let us help you find the best rates and strategies to save big on your home loan!