If you’d like to improve your finances this year, your home could hold the key to huge money changes. Here are just a few ways to start the New Year financially strong with the help of your mortgage.
Consider remortgaging
If you’re getting close to the end of your mortgage fixed rate period, it may be worth remortgaging your property for a better deal.
Your mortgage is likely to be one of your biggest expenses and by finding the best deal available, big savings could be made.
With mortgage rates still at the lower end of the scale, now could be a good time to switch to a different deal and lock yourself into a new product before interest rates increase.
Not only can remortgaging help you reduce your monthly repayments, it can also save you thousands of pounds worth of interest over the course of your deal, allow you to pay off your debt faster or free up equity to be spent on other things.
Make overpayments
Overpaying your mortgage can be a much more flexible way of saving money and improving your long term finances than remortgaging. This is because while remortgaging your property is a lasting change that requires commitment and forward planning, many mortgage products allow you to make one-off or regular overpayments without having to tie yourself into anything long-term. If you’d like to overpay by £50 a month for the first half of the year but by June you decide you’d like to go back to paying your regular payments, most lenders will give you this freedom.
Shop around for a better deal
If you decide that you’d like to commit to a lasting change, be sure to shop around for a better deal. It’s true that your current lender may be able to provide you with a cheaper mortgage than you have now, but there may be even better deals elsewhere that could save you hundreds of thousands of pounds over the course of your full mortgage term.
One of the best ways to shop around is through a mortgage broker. Here at TaylorMade, we can compare dozens of mortgages before highlighting the most suitable and cost effective ones for you. We’ll then guide you through the mortgage process and take much of the work and admin off your hands. To find out more, please get in touch with the team at TaylorMade.
