There are a couple of ways you can reduce your mortgage costs, either by boosting your affordability to access lower rates or switching to an interest-only or part and part mortgage. See which of the below options you're eligible for by creating a free plan today.
As long as you meet the lender’s age requirements, you could extend your mortgage term to pay less each month, but over a longer term. You’ll pay more interest overall, but you don’t have to stick with the longer term indefinitely.
Reduce your monthly costs while still paying off some of your loan with a part interest, part repayment mortgage. You'll have a smaller loan to pay back at the end of your term in comparison to interest-only, and will pay less interest overall.
Switching to an interest-only mortgage can be used as a tool to keep repayments affordable, but should be used as a short-term solution. Otherwise you’ll have to pay your remaining mortgage balance at the end of your term.
Having a low credit score tends to limit your mortgage options and could mean you'll be offered much higher rates. By improving your rating in the run-up to your remortgage, you could access better rates.
Depending on the loan-to-value (LTV) percentage of the mortgage, it could be worthwhile making a lump sum overpayment to reduce your loan size. With a smaller mortgage, your monthly costs will be cheaper.
If you have a large amount of savings, you can use an offset mortgage to link your home loan with your savings to ‘offset’ your mortgage debt. This means you’ll only pay interest on the difference between the two.
In a turbulent market, it can be difficult to find the best rates or deal for you. We can advise you on what you should do to reduce your mortgage repayments and make your monthly costs more manageable, based on your situation and the current market.
Create a Tembo plan to get started or compare live interest rates from across the market on our comparison page.