Mortgage Renewal

WDWFan

Hello, I've been reading these forums for a while, but never signed up until now. This is obviously my first post, but I'm hoping that I will be able to learn a lot while I'm here.

I must admit, I am in the process of learning about mortgages, never considering that I should be paying it off faster than expected, and just considering that it is part of life.

Anyway, my renewal is due, and it seems that unlike last time I have a few options on the table. The first is a 3 year fixed term, which is around £300 cheaper than my monthly payments are now, or I have been advised to consider a 5 year fixed rate which would save £150 a month.

With this it has been recommended that I should lower the term and increase the payments to pay the mortgage off sooner, though this is where my eyes started to glaze over, as the options just kept coming.

I'm considering a 3 year mortgage, as at the moment I'm not sure where things will be in 5 years, although I was really being pushed for 5 years, but my question is really about lowering the term, this was highly recommended to me.

My original thoughts were that I was going to take any difference in what I was paying and use this to make over payments, therefore not being commited to the monthly payments, and allowing me to use this money if need, but would it be more beneficial to lock my self into a fixed rate at a shorter term?

Also is 5 years really more advantageous than 3?

Thanks for any views or advise