Confused as to what to do next?

Assistant

Hi

I have a fixed rate deal ending at the end of November. when I remortgage I will have 15 years term left and £40,000 still owing.

I have been paying off extra every month for the duration of my fixed rate.

What shall I do next.
Get a mortgage for 5 years with higher monthly repayments
or
get mortgage over 10 years and pay extra each month

My thinking is , I may pay off my mortgage sooner if I get a 10 year deal , paying it off before 5 years. via extra monthly payments.

Sorry if this all seems a bit confusing?

Calfuray

I would say it depends on your individual circumstances.
If your job may not be safe in these times, you don't have much in way of emergency funds etc, then it would be safer to keep your term long, and hence your minimum payment low, and make the extra payments as and when you can.

In 90% of cases, I would say it would be better to keep the term long for the added security.

SG27

Just keep the term long and overpay to pay it off in 5 years. Beware of early repayment charges though.

dimbo61

Consider an offset mortgage as they allow unlimited over payments and you can also save into the offset account for flexability.
You can build up a large emergency pot which saves interest on the mortgage debt and use this money if needed as a deposit for your next property.

getmore4less

What's the follow on rate?