Mortgage term

sazziecee

Hello

I am currently with Northern Rock and have been since 2001 when I bought this house. (was tied in for 6 years due to cashback)

I took out a new deal with them a year ago as it seemed easier than changing at the time.(taking into account the fees and extra paperwork etc)

My deal doesn't end for almost another year, but I am just pondering things, in case NR still aren't allowing existing customers new deals by then.

As I have 18 years from a 25 year mortgage remaining, when comparison tools ask me how long I want to repay over, I enter 18 years so that I still pay my mortgage off by the time I am 45 (at least, if i can afford to overpay ever I will)

However if I were to change it to a longer period, is there any advantage, other than my payments being lower per month? would an extra 2-7 years of payments outweigh any benefit of lower mortgage payments?

I think I would rather pay slightly more and pay my house off sooner to be honest, but wondered if anyone thought otherwise?

Thanks

shaymenRup

Fairly logical really. The longer the deal the more you pay.

In todays turbulent times you need to choose a deal that affords room to manuovre. If you overpay, then at least if rates rise you know you can afford.

Northern Rock need to realise a lot of their mortgages, so they are making remortgages with them unattractive so that people switch and redeem their mortgages. I suspect in a year it will be the same. Are you tied in presently? If not then it may be worth checking out fixed rate deals over the next few months, albeit rates may fall again this year.