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Mortgage - short term fixed vs longer term with over payment
mike_sedge
Posts: 12 Forumite
Hi there
I wonder if someone can help me with a question we have re our mortgage. We will be re-mortgaging our property later this year and want to repay it as quick as possible.
Is it better to take a shorter term mortgage with fixed payments we know we can afford, or take a longer term with lower monthly payments but over pay each month?
How would this affect the amount of interest we pay overall etc?
I wonder if someone can help me with a question we have re our mortgage. We will be re-mortgaging our property later this year and want to repay it as quick as possible.
Is it better to take a shorter term mortgage with fixed payments we know we can afford, or take a longer term with lower monthly payments but over pay each month?
How would this affect the amount of interest we pay overall etc?
0
Comments
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If you pay the same amount each month, it would make no difference to the interest you pay or the point the mortgage is repaid.
The only difference is flexibility. One you have to make that level of payment, the other you can choose not to make the overpayment in a particular month if circumstances dictate otherwise.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
It completely depends, "is it better" well which is best for you? its more of a personal question.
MY preference would be a longer term fixed and overpay on that badboy (my current situation) as then worst case scenario, i know my bottom line to pay is X per month0
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