7 Tips To Save Money on Your Mortgage

1. Wait Before Buying

In the UK and US, the next 12 months are likely to see falling house prices. Therefore, this is a good time to wait and allow prices to drop before buying getting a mortgage. If you are wanting to buy now, use these predictions to offer significant discounts off the asking price. Homeowners who hold out for higher prices, will struggle to sell in the current climate

2. Save Deposit to get better rate.

Renting temporarily also gives you chance to save for a bigger deposit. A higher deposit will enable a better mortgage deal, especially in the current climate. If you can only put down 5%, you are likely to have less choice and face higher rates than if you can put down 10% or 15% deposit.

3. Make Extra Monthly Repayments.

Once you have a mortgage, one of the best things that you can do, is to try and make extra monthly payments. Therefore, if this is going to be possible take out a flexible mortgage which will not penalise over payments. Even making an extra £50 or $50 a month can make a huge saving to your final mortgage cost. Making extra payments will save interest payments and could shorten the length of your mortgage by several years. Paying extra into a mortgage is likely to beat most investment decisions you can make. Plus there is no risk and gaining a bigger % share in the house will make remortgaging easier. (Making extra mortgage Payments)

4. Remortgage regularly

It is oft repeated advice, but, remortgaging at every opportunity can save you alot of money. If you are reading this, chances are that you are aware of the benefits of remortgaging. But, many homeowners still fail to take advantage of the lower payments that can result from remortgaging. When your mortgage deal ends, make sure you have the best mortgage deal to take its place. Check online and with mortgage broker’s. The small investment of time will definitely pay  you back.

5. Buy Wisely

When buying a house, be judicious in buying a house that is not beyond your means. Evaluate different areas and avoid paying a premium for some areas which might be viewed as trendy or desirable for local schools (unless you need this). Getting the biggest house is not necessarily the best use of your money. Don’t tie up all your income into paying a mortgage. A smaller house may enable more disposable income to do other things like travel. Don’t spend the absolute most you can get away with; buy a house you will be happy with.

6. Small Lenders May offer best rates.

The best mortgage deals are often given by the smaller mortgage lenders and not the main high street banks. Therefore, don’t assume that the bigger lenders will be able to offer the best rates. - See (best mortgage deals - avoid big banks)

7. Current Account Mortgage

If you have substantial savings in a current account, you can put it to good use by taking out a current account mortage. This automatically uses savings in your current account to reduce your mortgage balance and make significant savings. You will also be able to save paying tax on interest from your current account. Definitely worth checking out for anyone with a current account. (Current account mortgage)