New Deal Query

fortune87

Hi all,

I have a mortgage with Natwest and the deal is about to come to an end.

My mortgage is as follows:

25 year term / £104000 loan - Will owe around £98000 at the end of the deal. Works out around £570 per month.

After my wedding in the next year I will be able to make large lump sum payments from what is owed. Is there any reason why I can't extend my term in order to bring down monthly payments and allow me to pay even more off the loan? I realise I may only be able to pay 10% of my overall loan off per year however extending the length of the loan will free up around £150 per month in mortgage payments.

Does this make financial sense to change the term?

Gary123456790

Hi,

I don't quite follow what you've written, specifically

fortune87 wrote: »

Is there any reason why I can't extend my term in order to bring down monthly payments and allow me to pay even more off the loan?

If you extend the term and reduce the payments, you pay off less as you are paying less each month...

Are you saying after your wedding you'll have extra cash to pay off your mortgage? If so, at this point you could reduce the term to increase the payments, allowing you to pay off more, presuming you'd top your overpayment limit.

The caveat is that you may not be able to extend the term out again, so you have to be careful changing the term.

Gary.