Higher monthly payment or overpayment?

ravellouk

Hi,

I'm in a situation where I'm looking to remortgage from a variable rate to a fixed rate and would like to know if it is better to go for a fixed rate mortgage with the maximum I can afford each month as the monthly repayment or go for something a bit lower in terms of monthly repayments but then overpay back up to my affordable limit?

Is there value to be gained by doing the latter or am I thinking about it too much!?

Thanks

brit1234

I would overpay before rates go up next year, save you a fortune in the long run.

Cannon_Fodder

If both end up at your affordable limit, then there is no difference...

If you go for variable and the rates rise, your affordable limit will be mostly eaten up leaving you no longer over-paying.

Fix at something you can afford.