reducing my monthly mortgage payments

I’m looking for ways to reduce my monthly mortgage payments. 

Other than moving to an offset mortgage can anyone recommend alternatives that are working for themselves?

I've been looking at these cashback programmes, not sure they would work as a savings tool and just be a false economy driving my monthly spending upwards.     

Can anyone offer any advice.


Comments

  • Sky_
    Sky_ Posts: 605
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    It depends why you want to reduce them--to reduce expenses due to too little income, to pay the mortgage off more quickly, or to reduce expenses because you have too much debt.  In any event, the first step is to see if you can switch to a lower interest rate.  

    The next option might be extending your mortgage term.  My OH and I recently did this because I have had to give up work due to long-term illness, so our income has almost halved.  We still overpay, but having a smaller 'committed' payment gives us peace of mind in case any other life events happen.

    However the mortgage was already on a low interest rate and we have minimal consumer debt.  If a large part of our income was going on unsecured debt repayments, I'd have tackled those instead with a DMP or similar, rather than extending the mortgage.  
    2022. 2% MF challenge. £730/3000
  • GeordieGeorge
    GeordieGeorge Posts: 500
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    You can possibly remortgage onto a longer term. As above it’d help to know why you want to reduce them to give the best advice.
  • Thanks for the reply. The reason is to pay the mortgage off more quickly rather than reduce the overall expense.

    I was wondering if anyone had any experience or advice on 'alternative' savings schemes to help with over payment?

    For example; saving through the various cash back schemes out there in the market.

    I appreciate it is down to personal circumstances, but I am interested in seeing if there were tips on offer as I would be tempted to focus on the saving rather than the overall spend which would defeat the object.  

      
  • LadyGnome
    LadyGnome Posts: 801
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    Cashback isn't saving - its getting money back only on those purchases you would have made anyway.  Most of us will use cashback sites when it is viable but the first consideration is whether or not the purchase is necessary and the second is whether or not the cashback offer is really better than other offers without cashback. i.e. £10.99pm plus £10 cashback is worse over a year than £10 pm with no cashback.

    People make extra cash via survey sites, Matched Betting and other side businesses.

    The only way to actually reduce your mortgage payments so you pay it off faster is to get a better deal.  I am about to move from a 3 yr fix at 1.79% which is ending to a 2yr fix at 1.28% that will reduce my contractual payments.  

    If your LTV is above 60% then lowering your LTV may make better deals available.  Once you are below 60% it doesn't seem to make any difference how much lower your LTV is (the lender has covered their market risk by that point).

    MortgageStart Nov 2012 £310,000
    Oct 2022 £143,277.74
    Reduction £166,722.26
    OriginalEnd Sept 2034 / Current official end Apr 2032 (but I have a cunning plan...)
    2022 MFW #78 £10200/£12000
    MFiT-6 #28 £21,772 /£75000
  • Ok thanks, I've not come across Matched Betting before. From a quick browser search it looks fairly straight forward.
  • MovingForwards
    MovingForwards Posts: 16,810
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    Make overpayments (nearly an extra ³/4 of the contractual monthly payment). To do this I:

    1. Cut back on other outgoings to increase overpayments.
    2. Store up loyalty points for spending Christmas and the money saved once a year is used to make an overpayment.
    3. Do surveys and earn money or points, money is used as overpayments or points converted to supermarket vouchers; money saved is used to make overpayments.
    4. Payrises are used to make overpayments.
    5. Birthday and Christmas money is used to make overpayments.
    6. As I'm not currently in the office and not filling my car up that often, the money saved is used as a weekly overpayment.

    I've had my mortgage for 14 months and knocked nearly 4 years off the mortgage term so far, my aim is to clear it within 9 years.

    It's not that I earn loads, my priority is to clear the mortgage.
    Mortgage started 2020, aiming to clear it in 2026.
  • Many thanks for the advice. As you say, making over payments the priority delivers the quickest results 

    I'm not as disciplined therefore my question around 'alternative' methods of saving which can effectively occur 'in the background'

    I like the idea of using the loyalty points, supermarket vouchers & cashback as de facto saving tools.

    Although as someone previously mentioned I need to be careful not to be overpaying just because there is an offer provided.

    I had not considered survey sites or Matched Betting and will look into these in more detail.
         
  • MovingForwards
    MovingForwards Posts: 16,810
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    I treat mortgage overpayments and savings as another bill to be paid on payday.

    I've also got a 12 month spreadsheet so I know all my fixed monthly / annual bills and outgoings, can see how much is spare at a glance.
    Mortgage started 2020, aiming to clear it in 2026.
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