When you have a mortgage, it’s important to keep in mind that there are ways to reduce your payments. Depending on your situation, you may be able to get a short-term loan or set up an offset account. You can also refinance your mortgage. “Refinance your mortgage and save without any hassle,” as SoFi professionals suggest. As long as your lender agrees and you follow the rules of your particular product, you can save yourself thousands of dollars over the life of your loan!
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A short-term loan
A short-term loan is a great way to help reduce your mortgage in the short term. Because it’s just for a few months, you don’t have to worry about refinancing or paying anything back after that period. You can borrow up to 5% of your home’s value (or £100,000) at an interest rate of up to 4%.
You can get one if you have a good credit rating and plenty of equity in your property, but if not, there are other options available!
You can apply online or over the phone with most lenders – check their websites for details on how they operate.
An offset mortgage account
Another effective way to reduce your mortgage is through an offset mortgage account. This type of account allows you to offset the amount of money in your savings account against the amount owed on your loan.
If you were to do this, you would be reducing the interest you would have had to pay if only a standard repayment plan were in place. You can also use this method to reduce the term of your loan as well as its cost by paying off a portion or all at once (depending on how long you want it). However, keep in mind that additional fees will be attached to using this service; therefore, you must understand all aspects before signing up so as not to get caught off guard by any unexpected charges later down the line!
Redeeming in a penalty-free period
You can also pay off your mortgage early without penalty. This can be done in one lump sum or by making regular payments. However, if you redeem early, the lender will charge a redemption charge. This depends on how much of the loan remains to be paid and your type of mortgage.
Talk to your lender about overpayments
You can overpay your mortgage by paying more than the monthly payment. This way, you’ll reduce the total amount of interest you pay and save money in the long run. However, it’s only sometimes possible for people to do that.
Overpayments can be made in various ways: by check, online or by phone. You can make an overpayment weekly, monthly or annually, depending on what works best for you and your lender’s terms.
Overpayments are often done through direct debit from a bank account, but sometimes through check payments, too (if that’s what your lender offers).
You’re all looking for ways to cut costs, and your mortgage is no exception. However, it’s important to remember that this isn’t just about saving money—it’s also about planning for the future.
