reduce mortgage lengh vs reduce monthly mortgage repayment

spender76

Hi,i am about to put a lump sum into my mortgage but i am not too sure whats best for me,is it to reduce the mortgage lengh or reduce monthly payment.
Thanks in advance.

Thrugelmir

Only shorten the term if you are happy to maintain your repayments at their current level.

JimmyTheWig

The quicker you can pay off the mortgage, the less interest you will pay. So by that logic, shortening the term will save you lots of money in the long term.

But, as Thrugelmir points out, this keeps your monthly commitment the same as it currently is. If you think this might be too high in the future then keep the current term.
If you can do so within your overpayment allowance (different lenders have different rules) then you could keep the term the same and put the difference in monthly repayments to one side every month and make an overpayment with them when you feel comfortable in doing so.