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

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

Comments

  • Yorkie1
    Yorkie1 Posts: 12,185 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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
    lee111s Posts: 2,987 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    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
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
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