Remortgage advice please

hs61

Hi

First time poster so apologies if I am posting in the wrong place:D
I have a £122000 mortgage with Lloyds TSB which has 12 years to run at 2.5% APR. Due to financial difficulties a couple of years ago it has been repaid as an interest only mortgage at £620 per month instead of approx £1300. I retired from the fire brigade last May and used my lump sum to clear all other loans/debts etc and the mortgage is my only debt. I am a basic tax rate payer and also now manage to save (for the first time in my life!!) some money for my grandkids future.
I wonder if anyone could advise the best option for me to get the best possible deal for a remortgage on my property, is it best to ask Lloyds or go elsewhere. My home is worth roughly 180000 to 200000. Is it likely I can get a new deal for 12 years at a better rate that would enable me to pay full repayments and be mortgage free in 12 years instead of still owing the bank a big lump sum at the end of the term??
Any advice greatly received
Many thanks

H:beer:

kingstreet

Better than 2.5%?

No.

Your problem isn't the rate. It's the term you have left. You need to be on repayment to actually reduce the capital owing. Otherwise, you need to start making voluntary overpayments as often as you can and as quickly as you can.