UK mortgage holders can cut monthly payments to £330 for next five years

UK households have been told they can cut their mortgage bill to just £330 a month – if they act decisively and DOWNSIZE. Mortgage holders can get their monthly payments cut from over £700 to £300 by picking the right property.

Speaking to the Guardian newspaper, a string of couples who have made the bold move have spoken out over the savings they have been making. Richard Wise moved from London to Margate, and slashed his costs,w hile a 50-year-old in Edinburgh cut her fixed-rate deal on a five-year mortgage to £330 a month – down from a variable tracker which was costing £750.

“It’s more a fear of what could happen,” she said. “I was a teenager when mortgage rates went crazy … and so I’m worried about those kind of scary figures and [rates] going out of control with the current government. With everything increasing, it feels like one piece of the puzzle we can have control of.”

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“Even if mortgage rates go sky-high, we would still be able to manage to pay, whereas with the larger mortgage, if the rate was to go up to 10%, it would obviously have a much bigger knock-on effect, and because my working hours are limited, I wouldn’t necessarily be able to find a way round that,” she added.

“In prior years, when interest rates were very low, it seemed the norm for first-time buyers in particular to buy a larger property than their needs dictated,” says David Sharpstone, a director at the mortgage brokers CIS Mortgage Advice.

“Now that we’re in a period of higher interest rates compared with the past 13 years, I’ve definitely seen a trend for homeowners downsizing to reduce their mortgage payments, and first-time buyers purchasing smaller properties, or even flats rather than houses.”

Karen Noye, a mortgage expert at the wealth management firm Quilter, said: “Even though mortgage rates have gone down, we have seen people see their new payments skyrocket. This inevitably leads to thoughts of downsizing.”