Are you struggling to survive with the little money paying a mortgage is leaving your family to live on?
The following 5 hacks can easily help you to reduce your monthly payments:
1. Stop your Private Mortgage Insurance
Unlike the rest of mortgage insurance cover, Private Mortgage Insurance (PMI) protects the lender, not you. Yet, If you put a deposit down of less than 20%, you’ll probably be paying PMI. The bank won’t stop your PMI until you request it; once you’ve repaid 20% of your mortgage, contact the bank to stop your PMI.
2. Don’t remain on a standard variable rate mortgage
Remaining on a standard variable rate (SVR) mortgage is the most expensive mistake house owners make. Once your introductory rate has expired, the bank will change your mortgage to a standard variable rate (SVR). SVR are high because they’re how banks make money from mortgages. The only way to avoid overpaying is to constantly review your mortgage.
3. Work on Increasing Your Credit Score
Your credit score affects the interest of your mortgage. Low credit scorers will get higher rates. Pay down your credit cards and remove late payments from your credit report by making a deal with the creditor or the credit bureaus.
4. Extend your loan
We only recommend extending your loan if you’re really struggling with your mortgage, as It will reduce your monthly payment but you’ll end up paying more interest.
5. Overpay on your mortgage repayments whenever you can
It can seem redundant, but overpaying your mortgage will help to lower the interest and therefore your monthly payments. Before making any overpayments, check with your bank on potential penalties. Also, most banks have now an online mortgage overpayment calculator, check yours (just put Mortgage Overpayment Calculator followed by your bank’s brand) to get a better idea on how much you can save.