Advice: pay off term or total amount???

Neil_Stewart_2

Hi,

I have a mortgage with santander. It is a fixed rate monthly repayment. I have 32 years left on it. I am finally in a position to be able to pay a little extra back a month. On phoning Santander to arrange they said I can choose to pay off the term (ie the 32years) or the amount borrowed!!

I was wondering what's the best move to make!? Pay of the length of time I have to make repayments or pay off the total amount?

Any advice?

Thanks

TrickyDicky101

What the numbskulls actually mean is that you can either keep your repayments each month the same as they were before making the overpayment (this would in effect reduce your term) or reduce your monthly payments after the overpayment thus preserving your payback term.

How much in the way of overpayments can you afford and what is the maximum Santander will allow you to make each month?