If you are struggling to pay your mortgage or would like a little more financial freedom every month there are solutions available. For those not meeting their repayment plan, avoiding debt is the number one priority as this can be a downward slope to property repossession. Find out how to reduce mortgage payments below.
Reducing your mortgage due to debt
Losing your home really is a last resort as there are a number of ways you can change your circumstances quickly to stop yourself falling behind with payments or further into debt. Some of the most common solutions include:
- Switching to a cheaper mortgage
- Cutting down monthly payments
- Tweaking your endowment policy
- Downsizing your home
Switching to a cheaper mortgage
Just like changing to a new car insurance provider to get a better deal, you might be able to find a cheaper mortgage deal with another lender. Deals with lower mortgage interest rates should reduce the amount you pay. There are charges associated with changing provider and you will need to settle any outstanding payments upon transfer, but it could transpire that you would be more comfortable in the long run and avoid future debt.
Alternatively, changing your contents insurance, buildings insurance or protection insurance can help your savings accounts too.
Cutting down monthly payments
If you are honest and transparent with your mortgage provider they will often do what they can to help you. You are their customer and they are there to support you, so will often cut down or pause your monthly mortgage payments whilst you get things together.
Always check, before committing to any changes, whether your mortgage lenders will charge you. Some mortgage providers have fees associated with redemption or administration.
Tweaking your endowment policy
If you have an endowment mortgage you have two options when wanting to reduce your mortgage payments:
- Temporarily stopping payments into your endowment policy
- Asking for a reduction in payments on your endowment policy
Many financial advisers explain that making changes to your endowment policy can be a financial minefield. Furthermore, there can often be complications and seeking impartial advice is key.
Downsizing your home
If you are at a point in your life where a smaller home could be a consideration, buying a smaller home that is lesser in value than your current property could see your mortgage repayments reduce considerably. Some people who live in expensive homes are actually able to clear their mortgage and buy outright when downsizing, eliminating mortgage repayments altogether.
If you are interested in selling your home quickly and easily, we provide an alternative to the traditional open market route. Get in touch with us today to discover how we can make selling your house to downsize as stress-free and seamless as possible in as little as seven days.
So, if you want an easy and efficient house sale solution to make decreasing your mortgage payments achievable, simply fill in our enquiry form and we will be in touch very soon.