Advice on term on new mortgage

cookie1979_2

Hi

I am just after some advice if possible as i'm getting slightly confused on what to do for the best!!

Basically, i have a current mortgage with Nationwide, £113000, interest rate of 4.59% and a term of 21 years 10 months.

I want to borrow an additional £63000, interest rate of £5.34 at 25 years - again with Nationwide.

However, they have said i either have to run both morgages over 25 years or both over 21, they will not let me have my existing at its current state and the extra part of 25.

What is the best way to go? Either 25 or 21? I just feel that if we drop down to 25years my morgage will never go down?

Any advice really appreciated.

Thanks in advance.

homer_j_3

is it affordable at 21?

cookie1979_2

Yes it is affordable at the present time. However the large part of the mortage comes to the end of the fixed rate in March so the monthly payment will no doubt increase as we have a fab deal at the moment.

homer_j_3

So you will have 2 interest rates, 2 early repayment periods. This is always a compromise.

The shorter the term the less interest you will pay overall but I would notever suggest that you put yourself in the position where it puts you under unecessary strain.

Can you not go half way and look at 23 years to see if that makes it a little easier.

When March comes - how long until the other fixed rate comes to an end?

cookie1979_2

The extra mortgage is a fixed rate for 5 years and we are about to deciding the term on it now.

homer_j_3

so you wil have just under 4 years to go when you original mortgage reverts to the variable rate.

I would probably put the whole thing on the shortest term now and then review next march when you review that again.

Just to add - check with Nationwide that you can do this. I would imagine if you did 2x2 year products when you review your main mortgage then you should only have a few months on vriable rate when the 5yr fixed ends

cookie1979_2

Thats great thanks very much for your help!