How to save money on your mortgage

Rates are higher than they have been in the past five years or so, if you need to remortgage your property and want the best rate follow these tips:

• Equity, the more of this you have the better!  The more money you have in your property the lower risk you are to a lender. This in turn then means that lenders will offer you a better rate. 

• Surveyors are valuing properties at 2006 prices. So be aware that you should be realistic when you estimate your property value to your lender or broker. Otherwise you may end up paying for a survey which down values your property and then the mortgage would not necessarily be available to you.

• It is possible to increase the value of your home and 'Beat the Credit Crunch' by making some home improvements. Consider an extension, a loft conversion or a conservatory. Your estate agent can guide you on the difference this would make to your property value and judge if this is the right step for you.
• Speak to a mortgage broker, whatever the press or 'Bob' from down the pub is telling you, a mortgage adviser will understand the current climate and ensure that you don't waste time speaking to lenders/banks that would not lend you enough, charge you a high interest rate or even decline your application because you don't fit their criteria. This can cost you time and money. They may also carry out credit checks on you which will leave a 'foot print' on your credit file, this doesn't look good to other lenders who you may ultimately decide to use.

• Almost everyones mortgage payment will go up so be prepared for this, look at trying to save money in other areas to help you deal with this -

Utilities - are you with the cheapest provider (think about capping your price with your provider)
Loans and Credit cards - is there a way that you could get a better deal? or move your credit to one place to reduce your payments?
Insurance - Life cover, Home insurance, Accident, Sickness and Unemployment, Income protection - see if there is cheaper options available
Look at your bank statement - what else do you spend money on?  Do you ever use that gym membership you pay £50 per month for, could you save some money if you did things a little differently? Is now the time to start saving so that you can protect yourself from future financial difficulties?