Five tips for saving money on your mortgage

Headlines about interest rates are grim for mortgage customers, and 1.6 million UK homeowners with a fixed rate will see their deal come to an end by December 2024, according to UK Finance.

With the help of the some of the UK's leading mortgage experts, here are a few tips on coping with rising costs.

If you still have some time on a low fixed-rate deal, your mortgage could work harder for you now.

"Most lenders will allow up to 10% overpayments per annum, but make sure you keep some cash as a rainy day fund as it won't be easily accessible once used to reduce the mortgage," says David Hollingworth from mortgage brokers London & Country.

Putting money in a savings account can build up and also earn interest to help to pay down some of the mortgage ahead of fixing a new deal.

Moving to an interest-only mortgage can keep your repayments affordable, says Richard Dana, chief executive of digital mortgage broker Tembo.

"However, it's best to use this as a short-term solution, otherwise you will have to pay your remaining mortgage balance at the end of your mortgage term," he adds.

Your income and the amount of equity you hold in the property will determine your eligibility.

This is possibly not a realistic option for a growing family, or for the owners of a small flat.

But for older mortgage customers whose children have flown the nest, selling up and buying a smaller property could reduce the mortgage size - or potentially pay it off entirely.

"Consumers looking to re-mortgage may find it difficult to afford higher interest rates, so seeking independent advice is essential to consider every option available to them, such as downsizing," says Rachel Springall from financial data firm Moneyfacts.

The typical mortgage term is 25 years, but 30 and even 40-year terms are now available.

"Extending the term can help reduce the monthly payment but can cost tens of thousands of pounds more in interest over the life of the mortgage," says David Hollingworth.

"Make sure that you regularly review whether you could cut the term back again as your circumstances change."

From listing with a short-term letting site like AirBnB, renting out your parking space with an app like Just Park, or taking in a lodger or overseas student, there are several options to make a bit of cash.

"Under the government's rent-a-room scheme you will get a tax free allowance of £7,500 per year for income generated from your main home too," says Richard Dana.