Wait until remortgage or over pay now

dendes

JimmyTheWig wrote: »

The other thing that you may want to consider is reducing your mortgage term. This will increase your monthly payments.
You should think carefully about this before doing it as you will then be committed to those higher payments for the rest of the mortgage - which could be a problem if rates go up or your income goes down, etc.

The benefit of reducing your term over making overpayments is that you get 1% cashback on Santander mortgage payments from a Santander 123 account. So might be worth paying more this way rather than overpayments that you don't get cashback for.

That's a very good point, thank you!

dimbo61

You need to look at the LTV in 2015?
If you overpay the 10% allowed will you be at 75/60% LTV when you need to remortgage or look at new deals from Santander.
Anything over £20K pay off the mortgage as £20K is a very good savings pot

dendes

dimbo61 wrote: »

You need to look at the LTV in 2015?
If you overpay the 10% allowed will you be at 75/60% LTV when you need to remortgage or look at new deals from Santander.
Anything over £20K pay off the mortgage as £20K is a very good savings pot

Yes, I think so. The house is worth est 220k and we have an outstanding mortgage at just under 105k at this point, I think. Sorry, I'm not too good at maths so not sure what LTV that works out at, but i know we were in 40% when we first got the mortgage.

JimmyTheWig

dendes wrote: »

Yes, I think so. The house is worth est 220k and we have an outstanding mortgage at just under 105k at this point, I think. Sorry, I'm not too good at maths so not sure what LTV that works out at, but i know we were in 40% when we first got the mortgage.

Doesn't matter what it works out at exactly. The relevant thing for you is that however low your LTV goes from here your deals won't get any better.