Mortgage Savings Made Simple: How to Keep More Money in Your Pocket

Feeling the pinch from high mortgage payments? You’re not alone. Many homeowners look for easy ways to shave off interest, use equity wisely, or boost their savings without stress. Below are straight‑forward tips you can start using today.

1. Check Your Loan’s LTV and Boost Equity

Loan‑to‑value (LTV) tells lenders how much of your home’s value you’ve borrowed. A lower LTV usually means a better rate. If you’ve built equity—maybe from house‑price growth or paying down the balance—consider a remortgage. Use the equity calculator in our guide to see if you qualify for a lower rate. Even a 0.5% drop can save you hundreds each month.

2. Pair Your Mortgage with a Savings Account

Saving while you pay a mortgage sounds odd, but it works. Open a tax‑free ISA or a high‑interest savings account and funnel any bonus money, tax refunds, or side‑gig earnings into it. Over time, the interest you earn helps offset your mortgage cost. For example, saving £20 a week in an ISA with a 3% rate can add up to over £1,200 in a few years—extra cash to put toward a lump‑sum payment.

Another trick: set up an automatic transfer the day after payday. You won’t miss the money because it’s already on its way to savings before you think about spending it.

3. Re‑evaluate Your Mortgage Deal Every Year

Rates change, and so do your personal finances. Use our “Remortgage Checklist” to compare your current deal with new offers. Look at:

  • Interest rate (fixed vs. variable)
  • Early repayment charges
  • Any fees for switching

If a new deal saves you more than the cost of switching, go for it. Even a small saving compounds over a 25‑year term.

4. Use Extra Payments Wisely

When you have spare cash, decide whether to pay down the mortgage or boost savings. If your mortgage rate is higher than what you could earn in a savings account, extra payments on the loan win. But if you’re close to an ISA limit or a bonus is coming, filling the savings account first can give you tax‑free growth.

5. Keep an Eye on Fees and Hidden Costs

Some lenders charge arrangement fees, valuation fees, or legal costs. Those add up and can wipe out any interest savings. Always ask for a full breakdown before you commit. Sometimes a slightly higher rate with zero fees ends up cheaper in the long run.

Finally, stay informed. Our blog drops new mortgage‑savings tips every month, covering topics from equity release to the latest ISA limits. Bookmark the page, sign up for updates, and turn those savings ideas into real money saved.

The Advantage of Remortgaging: Why It Might Be Your Best Financial Move
  • By Landon Ainsworth
  • Dated 3 Apr 2025

The Advantage of Remortgaging: Why It Might Be Your Best Financial Move

Remortgaging can be a smart financial decision for homeowners looking to save money, access better interest rates, or fund other expenses. Understanding how it works can help you make informed choices about your mortgage options. This guide explores the key benefits, potential drawbacks, and practical steps involved in the remortgaging process.