When you first took out your mortgage, the chances are that you were just so happy to be on the property ladder that you didn’t care about the monthly installments that you would need to make. But now that you are actually having to make mortgage payments each month and have more to pay for in general, such as a family to look after, your mortgage doesn’t seem as affordable, does it?
If you’re finding it hard to keep up with your mortgage payments and still have enough money left over for those other monthly costs, don’t worry you’re not alone. Believe it or not, there are ways that you can cut costs and make your mortgage payments more affordable, so there’s no need to panic just yet. Instead, have a read of the tips and ideas below for helping you to cut the cost of your mortgage, and see whether any of these are a suitable fit:
Increase the payback period
One option for making your mortgage more affordable is to increase the payback period for it. Obviously, this isn’t always possible, it will depend on your mortgage provider, but it’s something that’s worth finding out about. If you are able to stretch the payback period, you can reduce the amount that should be paid each month, freeing up some extra money for you to live on. Some mortgage providers can extend mortgages by up to ten years; others can only offer an extra couple of years, it all depends on the provider that you are with.
Refinance your mortgage
Another option worth considering could be the possibility of refinancing your mortgage. This is something that a lot of people opt to do, as the current rates for mortgage refinancing are good, meaning that you should get a good deal. When you refinance your mortgage, you can get a cash payout as part of it, which can be put towards home maintenance and updates, for instance, improving your home and adding value. Another benefit of refinancing your mortgage is the fact that it can lead to lower interest rates, helping to make your mortgage more affordable.
Switch mortgage providers
Something that could also be worth considering is looking at switching mortgage providers. If your mortgage provider isn’t offering you the cheapest rate, it could be worth looking around to see if you can find a cheaper mortgage provider to switch to. Often, there are mortgage providers who are able to offer you a better deal; it’s just a case of being willing to take the time to search for them and work out what the best deal is. The only downside to switching lenders is that you may have to pay your old lender fees to do so, but these don’t tend to be too high, and if switching will save you money in the long-run then it’s worth the cost.
Believe it or not, a lot of people struggle with keeping up with their mortgage payments, so if you are struggling don’t worry because you’re not alone. The good news is that making your mortgage more affordable is doable, it’s just a case of taking the time to look at all the options and select the one that is the best fit for you.