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Should I take the shorter term or....?!
Phelpsie001
Posts: 229 Forumite
Morning all,
I am not planning on staying in my house forever....maybe the next 5 or 10 years.
I have just overpaid approx £1000 and this knocked 2 years off my mortgage term. However, I do not intend to stay in this house forever and so should I take the reduced mortgage term when I overpay, or just take the reduced monthly payments and keep the term the same?!
Thanks
I am not planning on staying in my house forever....maybe the next 5 or 10 years.
I have just overpaid approx £1000 and this knocked 2 years off my mortgage term. However, I do not intend to stay in this house forever and so should I take the reduced mortgage term when I overpay, or just take the reduced monthly payments and keep the term the same?!
Thanks
Original Mortgage Debt - £130,330.
Current Mortgage Debt - £116,605.
2010 O/Ps - £5,000. 2011 O/Ps - £1,978.42.
Original Loan Debt - £6,000. Current Loan Debt - £3,500.
Original HP Debt - £1,000. Current HP Debt - £240.
Current Mortgage Debt - £116,605.
2010 O/Ps - £5,000. 2011 O/Ps - £1,978.42.
Original Loan Debt - £6,000. Current Loan Debt - £3,500.
Original HP Debt - £1,000. Current HP Debt - £240.
0
Comments
-
Well if you can afford your normal mortgage payment every month why reduce the payments!
You dont give your mortgage rate or any other information but the more you clear off your existing debt then the less you will need to borrow to purchase the next property.
I have been overpaying for the last 5 1/2 years and could today reduce my mortgage by nearly half BUT I want to be MF asap so continue to overpay while freezing my monthly mortgage payment as we have for the last couple of years0 -
I pay almost 6.59% interest so that is good advice!! I hadn't thought of that Original Mortgage Debt - £130,330.
Current Mortgage Debt - £116,605.
2010 O/Ps - £5,000. 2011 O/Ps - £1,978.42.
Original Loan Debt - £6,000. Current Loan Debt - £3,500.
Original HP Debt - £1,000. Current HP Debt - £240.0 -
I would encourage you to keep your payments the same, at that rate you'll really save a lot of interest. Also with rates and the economy uncertain reducing your biggest debt is a good move IMHO.
Good luckMortgage Free Date
[STRIKE]Original: Jun 2041[/STRIKE], Current:Nov 2022, Target: Oct 2020
Debts
[STRIKE]2010/02 £14,500[/STRIKE], 2011/02 £13,000, Target 2012/01 £0K
11k in 2011 challenge #32 4.8%0 -
I would agree with the advice. But, you also mention a loan??? If that is on a higher rate, you should look at paying that first.RosieTiger - Highest £242,000 Feb 2004 :mad:
Lightbulb Dec 2008 £146,000 by March 2026:eek:
MFi3T2 and T3 No 28 - Dec 2009 Start Balance £117,000
Current Position-Fully off set by savings since March 20130
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