Experts reveal ways to cut mortgage payments but warn of charges for easy mistakes

With the cost of living continuing to apply mounting pressure onto people's wallets, many homeowners may be concerned with paying their mortgages.

If you feel that you're barely struggling with keeping up with your mortgage payments, there are some things you can do to help you manage. Experts at Citizens Advice have highlighted that looking for a new mortgage deal might not be the best option.

They noted that it may be difficult "to find new mortgage deals at the moment", but this doesn't mean that you can't still save money in other ways. It's important to note that if you have already missed a mortgage payment, you should prioritise paying what you owe as growing debt can result in a lender taking you to court and ultimately lead you to losing your home.

Examine your total household budget

The first step to knowing how much you can save is knowing how much is actually going out. The goal with working out your budget is to try and spend less than what you're earning.

In order to work out your budget, you need to find all your bank statements, receipts, and bills over the past few months to help you figure out your quarterly expenses. If you live in a large household you should also sit down with your family to figure out the whole home's finances.

It is also important that you face the cold hard truth about your finances and avoid doing any estimations as this can risk in you getting a totally inaccurate number which will make it more difficult to accurately track how much you can afford to put towards your mortgage. Another key thing to remember is that any credit card should not count towards your available spending money as anything bought on it will count as a debt that must be repaid.

It is also advised that you use an online budgeting tool to help keep things organised, such as the one available from Money Helper.

Ask your lender to reduce payments

In some rare cases, you may be able to get your lender to reduce your monthly payments. Generally, your lender will only agree to this if you have proof that your property is actually worth more than what you owe to the lender.

You can also reduce your monthly payments by agreeing with your lender that you'll pay over a longer period. The drawback to this though is that you will pay more in interest over the new period than you would have otherwise.

Changing your mortgage deals

While it is difficult to switch to a significantly cheaper mortgage deal in the current market environment, there's no harm in checking. However, Citizens Advice has warned that you may have to pay some charges if you cancel your mortgage contract too early - known as a redemption fee.

Therefore, homeowners are urged to look over their contract and double check when it is supposed to end. If you do decide to switch, you should ask your new mortgage lender if there are any fees for arranging the new mortgage.

If you are already in debt with your mortgage, you should prioritise paying this off first as you will be charged for those payments if you decide to switch. It's also important to note that if you are on a fixed rate mortgage already, your contract may end soon.

Many people who bought a fixed rate mortgage before prices skyrocketed will have been enjoying much cheaper monthly payments, however, this will end once the contract ends and you'll be moved to a more expensive variable rate. If you decide to stay on a variable rate for whatever reason, you should check with your mortgage lender if they will drop rates when interest rates fall and see if you will be able to afford mortgage payments in the event that interest rates go up.