Remortgage question

first78

We are nearing the end of a 2 year fixed deal with Natwest and when I went into the bank yesterday they advised me if I switch to another 2 year fixed deal they have the interest rate will be about 1% less than I'm paying now.

We're planning to move house in the next 2-3 years once we've paid off a good chunk of our mortgage which we currently still have 25 years on. Now I'm unsure whether to keep the existing 25 years and just overpay what we can each month (we can't pay more than 10% of the total amount we owe each year), or whether it would save us money to reduce the length of our mortgage to maybe 10-15 years.

I hope I've explained this okay, I'm really not savvy when it comes to mortgages. Can anyone offer any advice please?

Mortgage_724433

Some good considerations. It sounds like a good deal offered by Natwest, but if you speak with a mortgage adviser they'll be able to give you advice on what is the best solution for you based upon your objectives.

If you speak with someone who is whole of market they can also review if there are potentially better deals elsewhere.

first78

Can anyone offer me some advice on whether to overpay as much as I can each month and keep the mortgage at 25 years or whether it's better to knock the remaining term down and pay a higher amount off each month?

hcb42

If you are remortgaging with current lender ,term will stay same as it is now .

It would be backwards to take out another 25 yr term.

I think I would take the lower rate now, overpay what I could and what is allowed and look to reduce term when you move in 2-3 years time - but needs to be at least 2 if you remortgage for 2.

You could of course shop the market - but that means a whole new application, so depends if it is worth your while in terms of time and effort.

Thrugelmir

If the plan is to move. I'd take the new fix and overpay. Little point in going through the process of changing the term.