For many homeowners who locked into deals during the interest rate peak of 2022 and 2023, the next remortgage may finally bring some relief. If rates have dropped since you fixed, you could find your monthly mortgage payments going down.

That extra money in your pocket can be a welcome change, but the question is: how best can you put it to use? Rather than letting it simply disappear into everyday spending, this could be a genuine chance to strengthen your long-term financial position.

You may be confused now but, with expert advice, you could turn that into clarity.

Five things you could do with the money you save

1. Boost your savings: Even modest monthly contributions can grow into a meaningful financial cushion over time. Whether it’s an emergency fund or a pot for future plans, saving regularly provides peace of mind. It’s hugely important too. Recent research by the FCA revealed that one in 10 UK adults have no savings at all, while just over 20% had £1,000 as a rainy day fund.
2. Invest through an ISA or LISA: Making use of your tax-free ISA allowance could help your money work harder. Whether it’s a stocks and shares ISA or cash ISA, these tax-efficient savings and investment accounts can help you grow your money more quickly. For those under 40, a Lifetime ISA (LISA) may be especially valuable and can help you save for later life and your retirement.
3. Review your protection: Life changes quickly, and the protection you put in place years ago may no longer reflect your circumstances. If things were particularly tight when you took out your mortgage, you may not have even taken out protection in the first place. The same research by the FCA found that more than half of UK adults (54%) have no protection in place – such as income protection, critical illness cover or life insurance. Using the money saved to review or enhance cover for you and your family can ensure financial security if the unexpected happens.
4. Consider investing in property: If you’ve been thinking about becoming a landlord or expanding your property portfolio, lower mortgage payments could free up funds to start planning that journey.
5. Put a will in place: It’s something many people put off, but making or updating your will is one of the most important steps you can take to protect your family’s future. If you suddenly have more flexibility in your budget, now could be the right time to prioritise it. This is something your mortgage adviser will be able to help with, or at the very least, be able to provide a suitable recommendation for expert advice.

Making your savings count

How you choose to use the money saved will depend on your goals, priorities, and circumstances. That’s why speaking to an adviser can be so valuable as they only simplify the remortgage process, but shape it around your needs and ambitions. They can help you weigh up the options, consider the risks and benefits, and create a plan that works for the present and the future.

A lower mortgage rate is a welcome change, but it can also be the start of something bigger. With the right advice, those savings can be used to build security, opportunity and peace of mind.

Want to make your savings count? Expert advice can be what you need to turn confusion into clarity.

To book your appointment with a mortgage adviser, please get in touch here info@lilacfinancial.co.uk  or Call on 015 3635 7806.

 

YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

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