Help Required.....Should I make overpayments....or increase re-payments

Anyone any ideas, I'm about to re-mortgage and would like to know which would benefit me the most,

I can afford to make overpayments on my mortgage over 20 years which will hopefully shorten the term of the mortgage,


Would I be better increasing my re-payments each month by shortening the term of the mortgage to ten years.

Any ideas would be most welcome

Cheers Baldy


    41.9K Posts
    10,000 Posts Combo Breaker
    If the interest rate is the same in both situations and the mortgage company allows you to make overpayments without any penalty and the totals repaid each month are the same then it makes no difference... the total interest will be the same and the mortgage will be paid off at the same time.
  • riad_2riad_2 Forumite
    184 Posts
    Again if the interest rates are the same on both 20 year and 10 year terms... I personally would opt for the 20 year term and make regular overpayments (by standing order for example)... because in this case the overpayments are voluntary and you can always stop your overpayments for a couple of months if funds are short for whatever reason (which you wouldn't be able to do with a 10 year term where the higher repayments would be mandatory!).
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