Shorten Mortgage term to overpay for products that dont allow OP

CassarJ

Hi,
I'm looking at re mortgaging as currently I pay about 4% and can probably get a cheaper deal.

I've used a broker but wasn't impressed (I may have just got a bad one!)

Looking myself there seem to be a few deals at 2% after discount for two years (Discounted from their VR) These products generally don't allow OP during the fix (or offer v small OP) so I'm thinking if I do switch to a product like this I'd shorten the term so my monthly payments are what I want to pay - this way I can pay more without penalty.

My Question is this:
Are there any disadvantages to shortening my term so I can pay what I want for those 2 yrs before switching again?

The only one I can see is that I'm forcing myself to pay more rather than choosing to
ie I have to pay the extra..

But as I want to overpay anyway maybe not a bad thing?

any thoughts would be appreciated:)

JC

getmore4less

You don't say how big the loan is.
How big is the discount what is the follow on rate.
any Fees

Planning to change in 2 years may cost, who knows where fees will be or what rates wll be.

What happens if you can't change(eg no job) and the lender does not agree to changing the current term, some(a lot?) lenders charge for changing term.

CassarJ

I was just wondering in principle but the fee is £999 for the mortgage (£155,000)
Its a discount reverting to 3.94% so is a 1.95% discount for 2 yrs
I think there's a valuation fee of about £270 also

If I loose my job i'm !!!!!!ed either way! even if i keep my current mortgage

The other option would be the lifetime tracker - as this way my overpay as I do now
1.89 +BoE rate seems to be the best deal I can see and the arrangement fee is half the price