How Can I Reduce My Monthly Mortgage Payments?

Feeling the pinch from mortgage repayments? You’re not alone. With the cost of living still creeping up, many homeowners are looking for ways to ease the pressure. You do have options. Whether you’re coming to the end of a deal or just want to make your money go further, this blog walks you through a few ways to reduce your monthly mortgage payments.

1. Remortgage to a Better Deal

If your current mortgage deal is coming to an end (or you’re already on your lender’s Standard Variable Rate), you could be paying more than you need to. Remortgaging allows you to switch to a new deal, either with your current lender or a new one, that could offer a lower interest rate.

Even a small reduction in your rate could knock a noticeable amount off your monthly payments. And if rates have gone up since your last deal, it’s still worth shopping around to see what’s available.

Top tip: Start looking 3–6 months before your current deal ends so you’ve got time to explore your options.

2. Extend Your Mortgage Term

Extending your mortgage term (for example, from 20 years to 30 years) spreads your payments over a longer period, meaning smaller monthly repayments.

Just bear in mind: while this can help with cash flow now, you may end up paying more interest in the long run. It’s a short-term fix that can give breathing room when you need it.

Example: If you’re paying £900/month over 20 years, extending to 30 years might reduce this to £700/month, but you’ll be paying for longer.

3. Consider an Offset Mortgage

If you have savings tucked away, an offset mortgage might be worth a look. Instead of earning interest on your savings, they’re used to reduce the amount of your mortgage that you’re charged interest on.

For example, if your mortgage is £150,000 and you’ve got £20,000 in savings, you’ll only pay interest on £130,000. This could lower your monthly payments or help you pay it off faster.

Offset mortgages aren’t right for everyone, but they can be a smart choice if you’ve got a savings pot you don’t need to access right away.

4. Take a Look at Your Budget

It’s not all about the mortgage deal. Sometimes, a few tweaks to your monthly budget can free up extra cash to make things feel a little less tight.

• Review subscriptions you don’t use
• Shop around for cheaper utility or insurance providers
• Meal plan to cut food waste and overspending
• Set spending limits on non-essentials

Even small savings can add up and help you feel more in control.

Here at MCB, we’re here to make sense of your options and guide you through the best route for your situation. Whether it’s remortgaging, extending your term, or just getting a clearer picture of what’s possible.  Get in touch – we’re always happy to chat.