MFW newbie! Is it best to save or change mortgage?

frugalsar

After having our house on the market for a year with no interest whatsoever we have decided to stay put and live here forever! we are 36 and have decided to try and be mortgage free and retire at 50-55. Our current mortgages' (with 125,000 over 20 years left on it) fixed interest has just ended and gone up! My question is - Is it better to remortage over a shorter time ie-14 years or to keep it as it is and save up to pay lump sums off? I'm not really all that sure how interest works and if overall I'll end up paying more one way or the other?

originalmiscellany

What are your rates currently, and before? How much is your house work (for LTV)? Generally the sooner you pay stuff off, the better, but if you can, could you fix to a lower rate, and then over pay hard, thus if you're able to keep on overpaying your mortgage is paid off, but if you find you can't overpay as much, it will clear naturally on your repayment mortgage.

SO without extra info I'm saying:
a) Is it possible to remortgage at a lower interest rate?
b) Ensure you can overpay every month, keep the mortgage at 20 years to go, but if you can overpay infinite amounts, you will lower what you owe, and if you can't keep on overpaying at a decent rate your monthly mortgage will be at a much better level than currently.

Hope this makes sense and helps?!

SG27

I would remortgage to best rate you can get currently. But keep the term the same then overpay. If you reduce the term then you are committing to higher payments.