Go part and part OR extend term mortgage

choccybuttons

My lender has offered us a new mortgage fixed at 5.29 for 3 years. We are currently on SVR which has just dropped to 4.5. Our mortgage is 106,000 interest only and we have no repyment vehicle.

They have offered me a part and part mortgage with repayment on 30k of mortgage with term of 22 years. Since we have no repayment vehicle I was wondering should we extend the term and pay a bigger chunk of the mortgage by repayment.

Any input greatly appreciated.

Dawn

opinions4u

It all boils down to affordability.

For me you need:

1) To absolutely get the whole lot on repayment.
2) Make sure you can afford the payments.

Personally I'd suggest working out how you can budget better to get the whole lot on repayment over 22 years.