Shall I Increase Lower Borrowing Term & Reduce Higher Borrowing Term?

Taff

I have finally decided to sell current property and upsize and need to know if I should extend my better rate borrowing duration and shorten the higher rate borrowing duration?

My details are as follows:-

Current mortgage · £59k mortgage on variable tracker 0.58% above BR for remaining 11 yr term (no tie ins)

Tookout additional 8K last yr with C&G fixed rate @ 6.29% which ends 31.03.15 then HVR

Total current mortgage balance £66,470.00.

Realistic current property value 120K.

£53.5k Equity. Allowing approx 5K for fees therefore £48.5K Equity.

I Can port the 59K on same T&Cs and can amend term and I have been given some figures from C&G as follows.

Selling existing £120k and buying at £150,000 (25 year term - Repayment basis)

Exsting Mortgage is split as follows:

Approx £59 @ 1.08% £224 approx

Approx £7527 @ 6..29% £50 addition borrowing (existing).

Approx £40635 @ 3.39% £202 Additional borrowing for new property. Two yr deal then HVR

Total approx £476 per month

Would I be better off increasing the better rate borrowing over a longer duration and shortening the higher interest borrowing to say 15 or 20 yrs? Rather than 25yrs.

Or shall I keep them all 25 yrs and overpay as much as I can on the higher rate borrowing if this would be allowed ?

Thanks

kingstreet

AFAIK you can only have the mortgage over one overall term. You can't pick 10 years for one bit, 20 years for another etc.

If you want to pay it off faster, overpay when you can and within the penalty limit, 10%?, applying the overpayments to the section on which the highest rate applies.

Taff

Im learning every day, thanks Kingstreet.

Makes sense providing C&G will allow me to overpay the higher rate borrowing.

What is the best online calculator to use to check the benefit of overpaying?

Is it better to overpay monthly or save and pay it off in a lump sum, or doesn't it matter?

Thanks again