Posted on: September 1, 2025
Small Changes That Could Save You Thousands on Your Mortgage
When it comes to managing your mortgage, it’s easy to assume that only big moves—like switching lenders or making lump-sum payments—can make a real difference. But the truth is, small, consistent changes to how you approach your mortgage can add up to substantial savings over time. Whether you’re a first-time buyer or years into your repayment journey, these simple strategies could help you shave thousands off your total costs and bring financial freedom closer than you think.
Make Extra Payments — Even Small Ones
One of the most effective ways to reduce your mortgage balance is by making overpayments. And no, it doesn’t have to be a huge amount. Even rounding up your monthly payment by £20, £50, or whatever feels manageable can make a meaningful impact. These small additions go directly toward reducing your principal, which in turn lowers the amount of interest you’ll pay over the life of the loan.
Most lenders allow you to make overpayments up to a certain percentage of your outstanding balance each year without incurring penalties—often around 10%. If you’re unsure, it’s worth checking your mortgage terms. The earlier you start, the more powerful the effect, especially in the early years when interest makes up a larger portion of your payments.
Switch to Fortnightly Payments
If your lender offers the option, consider changing your payment frequency from monthly to fortnightly. It’s a subtle shift, but it can accelerate your repayment schedule. Here’s why: there are 26 fortnights in a year, which means you’ll effectively make 13 monthly payments instead of 12. That extra payment each year goes straight toward your principal, helping you pay off your mortgage faster and reduce the total interest paid.
This method works particularly well for those paid biweekly, as it aligns with your income and can make budgeting easier. Just be sure to confirm with your lender that they accept this structure and that it’s applied correctly to your mortgage account.
Keep an Eye on Your Interest Rate
Your interest rate plays a huge role in how much your mortgage costs you over time. Even if you’re currently locked into a deal, it’s wise to stay informed about market trends and what other lenders are offering. When your fixed or tracker rate ends, you’ll typically be moved onto your lender’s standard variable rate (SVR), which is often significantly higher.
This is where remortgaging can come into play. By switching to a more competitive rate before or shortly after your current deal ends, you can avoid paying more than necessary. Remortgaging doesn’t always mean changing lenders—it could simply involve negotiating a better rate with your current provider. Either way, timely action can lead to major savings.
Use Windfalls Wisely
Unexpected financial boosts—like a tax refund, work bonus, or inheritance—can be tempting to spend on holidays or home upgrades. But putting even a portion of that money toward your mortgage can be a smart move. A lump-sum payment directly reduces your outstanding balance, which can shorten your mortgage term and cut down on interest.
For example, a £2,000 bonus applied to your mortgage could save you far more than £2,000 in interest over the years. It’s a simple way to make your money work harder for your future.
Understanding your property’s value can make a real financial difference.
Whether it’s influenced by local market trends or improvements you’ve made, an accurate valuation plays a key role when remortgaging. The interest rate you’re offered often depends on the equity you hold—so the higher your property’s value, the better your chances of securing a lower rate. This can allow you to pay off more of the capital each month, potentially shortening your mortgage term and saving on interest over time.
Adopt a Mortgage-Savvy Mindset
Ultimately, the key to saving on your mortgage lies in how you think about it. Rather than viewing it as a fixed monthly expense, treat it as something you can actively manage. Small, consistent actions—like reviewing your rate, making modest overpayments, or adjusting your payment schedule—can give you more control and confidence.
It’s also worth seeking professional advice periodically. A mortgage advisor can help you spot opportunities to save, navigate remortgaging options, and ensure your strategy aligns with your long-term goals. Staying informed and proactive doesn’t just save money—it strengthens your overall financial wellbeing.
We hope this article helps you understand how small changes can save you money. If you have any more questions or need further assistance, feel free to get in touch.
Craig Power craig.power@villagefs.co.uk or Luke.spires@villagefs.co.uk.
Your home may be repossessed if you do not keep up repayments on your mortgage
the information contained within was correct at the time of publication 01.09.2025 but is subject to change
