Strategies to Save on Your Mortgage Amid Rising Costs
- Christina Vassiliades
- Oct 6
- 6 min read
Last Updated: 6 October 2025
With mortgage bills rising and household budgets under pressure, homeowners across the UK are searching for ways to stay financially afloat without compromising on their homes. If you’re one of them, you’re not alone.
In this post, we’ll share practical mortgage savings tips to help you reduce your monthly payments and explore remortgaging strategies that can help protect your finances, both now and in the future.
Why It Matters
Over the last year, thousands of fixed-rate mortgage deals have expired, and many borrowers have seen their monthly payments jump by hundreds of pounds. Whether you’re currently on a Standard Variable Rate (SVR) or due to remortgage soon, knowing your options is key.
Managing your mortgage smartly is one of the most effective ways to gain control over rising living costs.
1. Remortgage to a Better Deal
If your fixed-rate deal has ended, or is ending within the next 6–12 months, remortgaging could be your biggest opportunity to cut costs.
Here are some remortgaging strategies:
Shop around for a lower rate - even a small drop in interest could save you thousands over the term
Fix your rate for stability - if rates are predicted to rise, locking in now could protect you from future increases
Use a mortgage broker - they can access exclusive deals not available directly to the public
Example: A homeowner with a £200,000 mortgage at 6.5% could save around £2,000 a year by remortgaging to 5.5%, depending on fees and term.
Many homeowners overpay by staying on their lender’s SVR, don’t let inertia cost you money.
2. Extend Your Mortgage Term
If you’re struggling with monthly cash flow, consider increasing the length of your mortgage term (e.g., from 20 to 30 years). This reduces monthly payments, but you’ll pay more interest over time.
When it works best:
✔️ Short-term cash relief needed
✔️ You're early in your mortgage term
✔️ You plan to overpay later when finances improve
Caution: You’ll pay more interest over time, so this is usually a temporary fix, not a long-term solution.
Always review this strategy with an adviser first, as it affects long-term costs.
3. Use Overpayments Strategically
If you’ve already secured a competitive mortgage rate but have spare income some months, consider making overpayments.
Benefits include:
Reducing the interest you pay overall
Shortening your mortgage term
Increasing equity faster
Even small regular overpayments can shave years off your mortgage.
Tip: Check your lender’s overpayment limit. Many allow 10% of the balance per year without penalty.
4. Consider an Offset Mortgage
Have savings that you don’t want to tie up in your mortgage? An offset mortgage might be worth exploring.
These products link your savings to your mortgage, and you only pay interest on the difference.
This can:
Cut your interest bill
Reduce your term
Offer flexibility if your income fluctuates
This is especially useful for self-employed individuals or business owners with irregular incomes and cash reserves.
5. Don’t Forget Product Transfers
If remortgaging seems too complex or your circumstances have changed, a product transfer with your current lender could still reduce your rate without a full affordability assessment or property valuation.
Product transfers are usually:
Faster to arrange
Lower in fees
Available without legal work or credit checks
Ask your broker whether this is worth considering.
6. Switch Your Repayment Type
Some borrowers consider moving temporarily to interest-only repayments. This reduces monthly costs significantly, though the capital balance does not fall.
While not suitable for everyone, it can provide short-term relief. Lenders will want to see a clear repayment strategy for when the interest-only period ends.
Quick Wins: Extra Mortgage Savings Tips
Avoid SVRs - review your rate before your deal ends
Bundle protection products - (life, income protection) to avoid future payment issues
Check your credit score - better scores = better mortgage rates
Use a broker - we can compare dozens of lenders and find the best match for your situation
Market Context: Mortgages in 2025
The Bank of England base rate has been cut to 4%, easing some pressure but still above pre-2021 levels.
Lenders are reintroducing more competitive fixed-rate products, though affordability checks remain tight.
House prices have levelled in some regions, meaning remortgaging may be harder if your property value has dipped.
Borrowers with clean credit and strong equity are still securing attractive deals.
Expert Tips
Plan ahead: Start shopping for a new deal 6 months before your current rate ends.
Overpay early: Even small overpayments are more effective at the start of your term.
Use savings wisely: Offset mortgages or lump-sum overpayments can reduce costs more than leaving money in a low-interest account.
Review protection: Make sure illness or income protection policies are in place - prevention is cheaper than missed payments.
Common Mistakes to Avoid
Ignoring your mortgage until it moves to SVR - this can add hundreds of pounds per month.
Chasing the lowest rate without considering fees - sometimes a slightly higher rate with lower fees is better value.
Overextending with long terms - lower payments now may cost much more over the full mortgage.
Forgetting to budget for other costs - remortgaging fees, valuation costs, and legal expenses can add up.
Going it alone - brokers often access deals not on comparison sites.
Final Thoughts
In 2025, rising costs are a reality for many households, but your mortgage doesn’t have to be a source of stress.
From remortgaging strategies and term adjustments to smart overpayments and product transfers, there are concrete steps you can take to reduce mortgage payments and ease financial pressure.
Need Personalised Advice?
At Manor Mortgages, we help homeowners, landlords, and self-employed individuals find tailored solutions that make sense not just now, but long-term.
FAQs
1. What’s the quickest way to reduce my mortgage payments?
Switching to a more competitive rate through remortgaging or negotiating a product transfer with your current lender is often the fastest way to lower monthly costs. Extending your mortgage term can also reduce payments but will increase interest over time.
2. Can I remortgage if my property value has dropped?
Yes, but your options may be more limited if your loan-to-value (LTV) has increased. Some lenders may still offer remortgage deals with a higher LTV, or you may consider a product transfer instead of a full remortgage.
3. Is it worth making mortgage overpayments during high interest periods?
Yes, even small overpayments can reduce your interest costs and term over time. Just ensure your lender allows overpayments without penalty (typically up to 10% per year of the balance).
4. Can I remortgage if I’m self-employed?
Absolutely. Self-employed borrowers can remortgage with one to two years of accounts or SA302s. Lenders may assess income differently, but there are many who specialise in self-employed mortgage applications.
5. What’s the best time to start looking for a remortgage deal?
Start reviewing your options around 6 months before your current deal ends. Many lenders will allow you to lock in a new rate in advance, helping you avoid the lender’s Standard Variable Rate (SVR).
6. Will extending my mortgage term hurt my credit score?
No, changing your mortgage term doesn't affect your credit score directly. However, lenders may reassess your affordability, and you should be mindful of paying more interest over the life of the mortgage.
7. Can I get help if I’m behind on mortgage payments?
Yes. If you fall into arrears, contact your lender immediately. Most lenders have hardship teams who can offer temporary solutions such as reduced payments, repayment plans, or switching to interest-only for a period.
8. What happens if I can’t remortgage at the end of my deal?
If you’re unable to remortgage due to lower property value, poor credit, or affordability issues, you may be moved onto your lender’s Standard Variable Rate (SVR), which is usually more expensive. In this case, ask your lender about a product transfer, or speak with a broker who can explore specialist lenders that may still help.
9. Can I switch my mortgage if I have bad credit?
It’s often possible, but options may be more limited. Some specialist lenders will consider applicants with missed payments, defaults, or CCJs, though the rates may be higher. Improving your credit score and reducing other debts before applying can help secure better deals.
10. How much can I realistically save by remortgaging?
The savings depend on your mortgage size and the rate you’re currently paying. For example, reducing the rate on a £200,000 mortgage by just 1% could save around £2,000 per year. A broker can calculate the potential savings for your specific situation, factoring in any fees.
Written by Ben Stephenson, CeMAP‑qualified Mortgage Broker, and reviewed by Mortgage Experts.
Manor Mortgages is FCA authorised (496907), has business for nearly 30 years and is highly positively reviewed (4.9 rated on Google). We have helped thousands successfully secure the right mortgage. Bristol based mortgage brokers, but can assist nationwide.