urgent help needed which is better reducing mortgage term by 7 months or not?

scrooge786

Hi people i was hoping u could advise me as i am not sure what to do. I am currently due to change my mortgage product and am not sure whether to stick with the product offered which is £818 per month a saving of £168 and for 247 months (20yr 7months) or go with a 20yr term and pay £13 extra amonth ie £831 which is better value should i take option 1 and try and make as many overpayments as i can or go for option 2 and pay a higher fixed amount ever month?

nmiah786

Not quite sure I understand your questions.

How likely is it that you will be staying with your current lender for 20 years.

But anyway with the first deal you end up paying a total of £202046 and with the second deal you pay a total of £199440. So it seems better in the long run.

Are they fixed rate deal or not?

scrooge786

Yes they are fixed rate for two years.

Hawksmuir

Pay more whilst you can, we don't know whats round the corner, interest rate wise or personally.