Cut your term
– If you’re certain you won’t need that spare cash for anything else, you could consider shortening your mortgage term next time you remortgage. By doing so your monthly repayments will increase and you are effectively permanently overpaying on your mortgage and cutting the total interest you pay. This relies on you knowing that you won’t need access to that money for anything else.
Use an offset mortgage
– An offset mortgage counts any money you have in an associated savings account against the amount you owe on your mortgage. This effectively reduces your outstanding loan, but still gives you the flexibility to access the savings money if you need it. Fewer providers offer offset mortgages and you are likely to pay a higher mortgage rate in return for the flexibility.