Bit lost at what to do. Pay off in 5 years or 10.

dinglebert

OK. Bradford and Bingley have offered a get out of jail free card on our fixed rate so we are free to move our mortgage. We currently have 6 years 8 months left on the mortgage to pay. If we sell our endowments we can pay off the interest free part of the mortgage and leave £37600 to pay on a house valued £170000 (next door just sold). With current 5 year deals we can pay roughly the same as we are currently paying, £670, and pay off the mortgage in 5 years. However I am getting fed up always being broke at the end of a month (especially 5 week months!) and am considering moving the term up to 10 years and paying about £350 a month less.

Any thoughts?

Kaz2904

I would go for the 5 year term. Have a look at your budget and see what you can trim or where you are overpaying.
Go to www.whatsthecost.com and enter in your figures and see how many thousands extra you will pay to double the term.

Nickij

Well if you can manage to pay your bills and get by, I would do the 5 year option - pay off as much as you can now that interest rates are low! Imagine how great you will feel in 5 years time when you are mortgage free.

You will no longer be broke at the end of every month- and have money left!

tomstickland

I'd go for the shorter option too.
You'll save money in the long term.

Joe_Bloggs

Perhaps the middle ground is to go for a a longer term mortgage with flexible features so that you can overpay when it suits, without penalty, or underpay if required.
J_B.