Reducing Mortgage Or Changing Deal??

djhaze2004

I Am Thinking About Reducing The Length Of My Mortgage , I Currently Have 21 Years Left Out Of 25, My Deal Has Ended So I Have No Tie Ins.

I Have About 61000 Left To Pay, And I Currently Pay 470 Ish Per Month

I Went Today To See My Provider (portman) Who Said My Best Option Would Be To Change My Mortgage To A New Rate Of 5.64% 2 Year Fixed Rate For No Fee Which Would Reduce My Payments To Around £410 Per Month And Pay Extra Payments Per Month To Clear It Faster.

Would I Not Be Better By Having A New Mortgage Of Say 15/16 Years And Paying The Same Or A Bit More.
I Can Afford To Pay Say £100 Per Month Extra

Any Suggestions Would Be Gratfully Appreciated!!!

djhaze2004

any help please!!

LisaT186

To be honest its up to you! Are you happy being committed to the payment per month that would be required to set the new mortgage term, or would you be happier setting the payment at the £410 so that should your circumstances change then you don't HAVE to find the extra £100 per month. Either way it should work out that your mortgage is cleared in the same time, just with flexibility on the overpayment way. Plus if you were able to pay more each month (subject to any limits they may have) you might be able to pay it off even quicker.

Depends on how disciplined you are!