Should I decrease my term?

dimbo61

Well done Bootman had the same size mortgage and hope to clear mine in about the same time ( with luck! )

Redbedhead

SHOULDI wrote: »

Have you considered the 7% Regular Saver ISA with First Direct? You can pay £300 per month into it and also it becomes an ISA therefore tax free.

It's a great time to start as it's the beginning of the tax free year.

http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml

Sounds perfect in your scenario.

Good luck

This is what I was going to suggest.

Then you have the option of paying it off the mortgage as a lump sum once you have no penalties to do so if you think that is better for you at the time.

knighter

bootman wrote: »

Anything you overpay is held in a reserve anyway, so you can have it all back out if needs be.

With the Nationwide this is only true if you overpay, not if you reduce your term.

uzubairu

Personally, I would reduce the term and incorporate the £300 (even only if for a short time).

We were in the same situation as the OP, already overpaying £500 and still had a little spare (after using up ISA allowance).

We've reduced the term 3 times in the last 6 months and will be reducing it again in July.
I'm pretty sure you can reduce or increase the term too at no cost as many times as you like, so if things got a little tight you could increase the term slightly.

The good thing is that you will have £6,000 per year that you can access whenever you need it, and if you don't you will be paying less interest.