How Many Ways are There to Reduce My Mortgage Repayments?
Sometimes trying to keep up with your mortgage repayments is challenging. If you are having difficulty, contacting your lender and explaining your situation can be beneficial. By being honest, your lender may be willing to work with you to find ways to reduce your mortgage repayments. There are many options, but here are just a few.
Reduce your loan repayments to the minimum amount
If your lender allows you to reduce your payments, it may be a way to free up some extra cash. You can also see if you can change from a traditional home loan to an interest-only loan for a while until you are in a more secure financial situation.
Refinance your loan
As long as you’ve owned your property for a while, you should have enough equity to refinance your loan structure and consolidate debts. By refinancing, you may have access to a line of credit that will allow you to make both mortgage and debt repayments. Another option to consider is a cash-out refinance. This option will enable you to receive cash for the existing equity in your home.
Change the date your repayment is due.
If you don’t budget your money well and run out before your mortgage repayment is due, consider asking your lender if you can switch your repayment date to a more viable option. For instance, you could have your mortgage payment be due on the same day you get paid, ensuring that the mortgage is the first thing you repay.
Look into hardship variations.
Lenders want to work with you and want to find a way to make your mortgage repayments affordable. However, if you are in a dire financial situation, there are three hardship variations you may qualify for.
- Frozen repayments allow you to stop making repayments for some time, allowing you to save money and get in a better financial situation. However, interest still accrues during this time.
- Frozen interest stops interest from accruing for some time.
- Partial repayments allow you to pay full interest still but lowers the amount you are paying on the principal for some time.
If you are struggling to make mortgage repayments, Mortgage House may be able to help. Contact one of our financial consultants to learn about possible options.