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Lower my mortgage bills

This mortgage bills guide outlines how to achiever lower mortgage payments and reduce mortgage interest.

You can save tens of thousands of pounds over a 25-year loan if you get the best mortgage deal for you. Here are our top tips for lower mortgage bills:

Lower my mortgage bills - compare mortgage deals

Due to the credit crunch – the recent worldwide squeeze on lending – it's harder than it was to get a cheap mortgage.

But it's still simple to do so with LowerMyBills. Give us a few details about yourself and we'll find the best mortgage deals for you – including some that are not available on the high street.

What to compare

When comparing mortgage deals, there are several things to look at – you need to get the right balance for you:

Initial deal – a low fixed, discounted or capped rate for the first few years.
APR – the advertised headline rate. It's a guide to the overall cost of the mortgage over its full term.
Fees – lenders increasingly charge up-front fees for their best deals.
Monthly cost – how much you'll pay each month.
Total cost – what you'll pay over the full term. Most people re-mortgage before the end – but this figure is a useful guide to the cost of all the interest and fees.

Reduce my mortgage interest - get access to the best deals

Lenders offer some deals only to customers with a big deposit. If the mortgage you need is just over 75% or 90% of the value of the property, see if you can raise some money elsewhere (borrow off parents, say) to qualify for the better rates.

It's also worth checking your credit record before you apply, to make sure it's accurate (lenders will look at it as part of your application). To check yours, use CreditExpert from Experian.

Lower my mortgage payments - choose the right mortgage term

You don't have to get the standard 25-year mortgage. You can get one for longer or shorter.

With a longer deal, you pay less each month (so it's more affordable) but you pay more in total (because you're paying interest for longer).

With a shorter deal, you pay more each month. But the total amount you repay is lower as you pay less interest overall.

Lower my mortgage payments - pay less by paying more than needed

With a flexible mortgage, you can alter your payments – paying more when you can afford it and taking the occasional repayment break.

Even with a standard mortgage, you can overpay each month – you'll pay it off early and save hundreds or thousands of pounds interest. Check that there are no early-repayment charges (and even if there are, you may be allowed to make small overpayments with no charge).

When an interest-only mortgage will suit

With an interest-only mortgage, you don't repay the loan until the end of the term – so your monthly payments are lower.

You can invest the money you save and use that to repay the loan at the end.

Or you can just pay interest for the first few years to help make your loan more affordable. This is a good way to reduce the initial cost, but you still have to repay the loan eventually. The more you put this off, the more you'll pay in interest overall.

Reduce my mortgage interest - don't get stuck on the standard rate

Fixed or discount mortgage deals are usually a couple of percent cheaper than lenders' standard rates. When your deal ends, you'll revert to the standard rate.

There's nothing to stop you remortgaging when this happens. But start early – it takes time to organise a remortgage, so compare mortgages before your last deal ends.

Lower my mortgage bills brought to you by LowerMyBills from Experian

The LowerMyBills guide to lower mortgage bills was created to help you compare mortgage deals, access the best deals, choose the right mortgage term, and the benefits of paying less and interest-only mortgages, giving you the information you need to help you lower your mortgage bills and reduce mortgage interest.