Fixed rate mortgage ending

first78

I've had a letter today to advise me that my fixed rate mortgage ends next month...if I don't do anything I'll then be paying a new rate of 2.50% (am currently paying 4.99%).

This means that my monthly payments will decrease. The letter stipulates that once I go onto the new interst rate I can then repay any amount at any time with no early repayment charges.

I have 16 years left on my mortgage and as my repayments will be roughly £80 less a month from June I wondered whether it would be worth overpaying by this much each month and whether that will then shorten the term of my mortgage? Does that make sense? I'm not great with working stuff out and obviously want to get the mortgage paid off asap.

Any advice would be appreciated, thanks.

getmore4less

more you pay the quicker you repay the debt it is as simple as that.

2.5% is a great rate think very carefully if you ever think of changing.

lender?


Also with debt at 2.5% you may be better of saving the money

dimbo61

You can get 3% tax free in an ISA at the moment but if you ask for your mortgage payment to remain static you wont notice any difference in your monthly outgoings BUT you will be paying off your mortgage quicker.
You wont have to worry if mortgage rates go up as you are already overpaying !
So if you have some emergency savings ( just in case) I would overpay the mortgage and stay on the LOW ( BMR rate) you have with your lender