Mortgage advice - HELP!!!
in Mortgage-free wannabe
2 replies 543 views
I've been considering paying off my mortgage early. I recently got a good deal when looking to re-mortgage in preparation for when my fixed period ends. I have had the standard valuation completed and offer accepted by a new mortgage provider. I have also signed the mortgage deed with the new provider but not dated it until the exchange takes place on 31st March. I chose to complete my mortgage in approximately 8 years instead of 17years. I really didn't get much advice before signing the agreement with the lender (silly me). I can afford the current monthly payment but given the economic climate feel it might be better play safe by increasing my term and making overpayments instead which would make me complete the payments within the same period I would have paid off the mortgage and with additional saving on interest. The new mortgage will not take effect until 1st April. I'll like to know if I can change my mortgage payment terms with the new lender without any implications? Will I still be able to receive the same interest rate since it was the same when I applied regardless of the mortgage repayment term. From my calculations using the mortgage calculator, it would be cheaper increasing the term and making overpayments compared with reducing the repayment term and with higher monthly costs. Hope this makes sense? Any suggestions will be welcomed. Thanks.
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