mortgage advice , is is worthwhile changing the lenth of replayment

marcobrum

hi, please excuse me if this sounds obvious it seems a no brainer but i am not sure still

i currently have 29 yrs remaining on a mortgage taken out last yr , we can now afford to pay back abit more ( promotion at work)

is it worth me moving my agreement to say a 23 yr mortgage and pay back this quicker rather than stick to 29 yrs

the only fee is 30 pounds from the lender , the rate says the same . i cannot really afford overpayments as we have no lump sum but i can afford to pay back abit more each month

also when the fixed agreement ends ( 4 yrs ) will i be worse off if i change lender , ie am i only paying back the extra interest at this point of the mortgage( i am currenty paying if equity and interest at mo. ) i assume the more i pay back the better, as long as i can afford it

please can anyone advice me , thanks;)

feisty1

quote i cannot really afford overpayments as we have no lump sum but i can afford to pay back abit more each month quote
either refer to yr kfi/offer of loan document and/or fone lender & ask how much u can overpay each month as per the agreement & the method of doing this ie just fone up & quote cards details etc

overpayment comes off the capital sum



quote also when the fixed agreement ends ( 4 yrs ) will i be worse off if i change lender quote

nobody knows what will happe in 4yrs!! yr current lender might not even be the same!!

marcobrum

do you think its best to over pay what i can afford and keep the current agreement then ?

i can always change when it suits . this way i can make over payments which go straigh towards the capital . i will still pay more off faster without extra risk.. 200 pounds a month extra , on top of normal repayment will make a difference but is it worthwhile or is it better to spend the money today ??!

not worry about changing yrs on agreement as this is just on paper and not a reflection of cost anyway ,so overpay or relax and spend

is that right or am i just confusing myself

Peelerfart

Hi Marcobrum,

Is it worth putting the extra money into an ISA then after four years you would have an option to pay a lump sum.

In addition you would beearning interest at a good rate.

£200 x 48 months = £9,600 + interest + you save the 30 quid

firesidemaid

what is your mortgage interest rate?

babirusa_rose

Have a mortgage review and ask them what the payments would be over a shorter term. Calculate the term to suit what you can comfortably afford to pay each month. Long term this will save you money as you will pay less interest back over the new mortgage term than you would over the originasl longer term.