when re-mortgaging is it better to keep the same term

supercal

I am just completing a 5 year fixed mortgage deal and when I re-mortgage should I keep the term at 20 years or should I return it to 25 years and overpay ?

Thanks

Yorkie1

Personally I'd keep it at 20 years unless there are strong financial reasons for needing to go back up to 25 years.

Bear in mind your retirement age (may restrict expiry date of mortgage) and whether you will be self-disciplined enough to overpay at the '20 year' repayment amount throughout the mortgage.

lee111s

Definitely if possible, reduce the term! If your new interest rate will be lower, keep your payments the same and you'll probably find that you can knock a couple of years off the term. I'm moving from YBS to Nationwide and I've take 3 years off the term and it's still £90 a month cheaper!

Thrugelmir

supercal wrote: »

should I return it to 25 years and overpay ?

Thanks

Will you though? Or will temptation to spend the money be too much. Depends on how financially disciplined you are.