Last updated: 13 October 2026. I checked every rate and lender option in this guide on how to reduce mortgage payments against the Bank of England, Moneyfacts and Citizens Advice on 13 October 2026.
By Stiv · Design, technology and personal finance
I've overpaid my own mortgage through Sprive every month since October 2021, and in June 2026 I remortgaged from Nationwide to Halifax. These are the moves I've actually used or weighed up for myself.
Disclosure: This article contains affiliate and referral links, which are paid links. If you click one and buy or sign up, I earn a commission or referral bonus at no extra cost to you. Brands don't choose what I feature or what I say about them.
Not financial advice. CoolCuration is not authorised by the Financial Conduct Authority. This article is for information only. Your home may be repossessed if you do not keep up repayments on your mortgage. Consider speaking to a qualified mortgage adviser before you change your repayment plan.
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If you want to reduce mortgage payments, there are two different jobs to do. The first is cutting what the loan costs you: getting off an expensive rate, timing your remortgage and plugging the leaks that drain your budget. The second, meanwhile, is lowering the monthly figure itself when money is tight. Be aware, though, that some ways to shrink the monthly payment cost you more over time.
Looking to clear it sooner instead? Our guide to paying off your mortgage faster is the speed plan, and everything we have written on Sprive, the app I use to overpay, sits in our Sprive guides hub.
Where mortgage rates stand
First, the backdrop. The Bank of England base rate is 3.75%. The Bank held it there on 17 September 2026, when three of the nine committee members voted for a rise. The next decision is due on 5 November 2026.
Fixed rates, however, have been moving up anyway. On 5 October 2026, Moneyfacts put the average two-year fixed rate at 5.98% and the average five-year fix at 6%, the first time it has hit that level in three years.
That matters if your current deal was fixed a few years ago at a lower rate. In that case, a new deal may not lower your payments at all, so the monthly levers below matter even more. On the other hand, if you have already slipped onto your lender's standard variable rate, moving off it is still likely to be your biggest single win.
One note on how our three mortgage guides fit together. This page is about how to reduce mortgage payments on the mortgage you already have, month to month and overall. Our pay off your mortgage faster guide is the speed plan for clearing it sooner. Our mortgage overpayment savings page is the numbers one, with worked examples and the calculator. Finally, the overpayment rules, the limits and every other mortgage guide sit on the mortgage overpayment UK hub.
Reduce mortgage payments by getting off an expensive rate
First of all, check what rate you are on. When a fixed deal ends, most lenders move you onto their standard variable rate (SVR). SVRs usually sit well above the best fixed and tracker deals, so you could be paying far more each month without noticing.
A few practical points:
- Start comparing deals three to six months before your current one ends. Most lenders let you lock in a new rate in advance.
- Ask your current lender for a product transfer quote as well as shopping around. It is often quicker, though not always cheaper.
- Factor in arrangement fees. A lower headline rate with a big fee isn't always cheaper overall.
- If you are unsure where to start, our easiest mortgage broker UK guide walks through the options.
- For timing, our when to remortgage UK guide covers the decision in detail.
Your home may be repossessed if you do not keep up repayments on your mortgage. Take independent advice before you remortgage.
How to reduce mortgage payments each month
Sometimes the goal is not the lowest total cost but a smaller bill this month. There are four main levers, and Citizens Advice lists the same options. However, each one has a trade-off, so read the small print before you ask.
1. Remortgage to a lower rate
This is the only lever that lowers the monthly payment and the total cost at the same time. As a result, it should always come first. The catch, as above, is that 2026 rates may be higher than the deal you are leaving.
2. Ask your lender to recalculate after overpaying
Whenever you overpay, most lenders either shorten the term or lower your monthly payment. Some let you choose. If a smaller payment matters more to you than an earlier finish, ask for the recalculation. You still pay less interest overall, just not as much as you would by cutting the term.
3. Extend the term
Spreading the balance over more years lowers each payment. However, you pay interest for longer, so the total cost goes up, often by thousands. It is a sensible move in a tight spell, provided you plan to overpay or shorten the term again later.
4. Switch some or all of it to interest-only
For a while, paying only the interest gives the biggest monthly drop. The catch is that the balance does not fall at all during that time. Most lenders will only agree for a short, fixed period, and you will need a clear plan to repay the capital.
Many big lenders also signed the government's Mortgage Charter. According to Citizens Advice, signatories should let borrowers who are up to date switch to interest-only for six months or extend their term, with the option to switch back. Check the GOV.UK signatory list and ask your lender whether it still offers this.
If you are already struggling to pay, contact your lender early, before you miss a payment. Free, impartial help is available from Citizens Advice too.
Overpay what you can
Overpaying is another way to reduce mortgage payments, and it works in either direction. Even an extra £50 or £100 a month reduces the balance that interest is charged on. Then you choose whether that shows up as a shorter term or smaller payments. The full seven-step plan lives in our pay off your mortgage faster guide.
Most UK lenders allow overpayments of up to around 10% of the balance each year without a penalty. Go over that on a fixed deal and Early Repayment Charges can wipe out the benefit. So check your allowance first via our mortgage overpayment UK hub.
After that, consistency matters more than size. For instance, a standing order works if you are disciplined. Alternatively, apps like Sprive automate the habit through Open Banking and add shopping cashback to the same pot. That is how I have done it since 2021, and the current sign-up bonus is on our Sprive referral code page. To see what your own numbers look like first, try our mortgage overpayment calculator.
Use lump sums wisely, not recklessly
Similarly, bonuses, tax refunds or money from selling things you no longer need can all help if they go to your mortgage. Even so, the classic mistake is throwing every spare pound at the balance and then reaching for a credit card when the boiler breaks.
A sensible order looks like this:
- Keep an emergency buffer in place first, even a modest one.
- Then apply lump sums within your annual overpayment allowance.
- Check whether your lender treats lump sums differently from regular overpayments.
If you are weighing up whether spare cash should go to the mortgage or into investments, we cover that trade-off in overpay mortgage or invest. In short, it depends on your mortgage rate versus the return you can realistically get elsewhere.
Plug the quiet leaks and redirect the savings
You don't need to live on beans on toast. Still, most households have a couple of quiet leaks: subscriptions nobody uses, delivery habits that crept up, or insurance that auto-renewed at a higher price.
Finding even £30 to £100 a month makes your mortgage payment easier to cover. Better still, you can send it on as an overpayment. Importantly, none of this requires earning more.
- Switch energy supplier if you are out of contract. Our Octopus Energy referral guide can help with that.
- Also review mobile and broadband contracts every year.
- Use a spending tracker like Emma to spot patterns you would otherwise miss.
Shorten the term when you can afford it
When you remortgage, you can usually change the remaining term as well as the rate. A shorter term means higher monthly payments but far less interest overall. So it is the opposite move to extending the term above, and it suits a different moment.
This only makes sense if the higher payment is manageable in a bad month as well as a good one. Nevertheless, trimming even a year or two at each remortgage adds up. Our when to remortgage UK guide covers the timing.
Avoid the traps that cancel out your savings
A few common mistakes can undo your efforts to reduce mortgage payments:
- Overpaying beyond your allowance and triggering Early Repayment Charges.
- Draining savings to overpay, then borrowing at a higher rate for emergencies.
- Extending the term to reduce mortgage payments and never shortening it again.
- Letting a fixed deal lapse and defaulting onto an SVR.
FAQs
How can I reduce mortgage payments without remortgaging?
Ask your lender about extending the term, switching part of the loan to interest-only for a set period, or recalculating your payment after an overpayment. Each one lowers the monthly bill. However, the first two usually raise the total interest you pay, so treat them as short-term fixes.
Does extending my mortgage term save money?
No. Although it lowers each monthly payment, it adds interest over the extra years, so the total cost goes up. It is useful for breathing space rather than saving money.
Can I overpay if I'm on a fixed-rate mortgage?
Usually yes, but only up to a set annual limit, often 10% of the balance. Go beyond it and you risk Early Repayment Charges. Our Sprive overpayment rules guide explains how to check yours.
Do I need an app to cut my mortgage costs?
Not at all. In fact, a standing order to your lender works well. Apps like Sprive help if you struggle with consistency, because they automate the overpayment each month. Our Sprive mortgage app review gives an honest take on whether it's worth it.
What is the quickest way to reduce mortgage payments in the UK?
If you are on an SVR, moving to a competitive fixed or tracker deal is usually the quickest and cheapest way to reduce mortgage payments. If you are mid-deal, ask your lender about a term extension or a temporary interest-only switch, and check the charges first.
More from CoolCuration
- Best mortgage overpayment apps UK: Sprive, Chip, Plum, Emma and manual methods compared.
- Cut household bills UK: practical ways to trim your monthly outgoings and free up cash.
- Octopus Energy referral guide: switch energy supplier and pick up a bill credit along the way.
- Snoop referral code: a free money app that watches your bills and flags better deals.
- New home gift guide: useful, well-made things for anyone who has just got the keys.
Your home may be repossessed if you do not keep up repayments on your mortgage. Rates and terms can change at any time. This is not financial advice, and CoolCuration is not authorised by the Financial Conduct Authority. Check your own mortgage terms and consider speaking to a qualified mortgage adviser before you change your repayment plan. This article contains affiliate and referral links, which are paid links. If you click one and buy or sign up, I earn a commission or referral bonus at no extra cost to you.
Rate averages from Moneyfacts (5 October 2026). Base rate checked with the Bank of England on 13 October 2026.
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