Remortage - length of term vs overpayments question

rca779

I am about to start the process of remortgaging and I have a question about the term I should go for.

My current deal runs out at the end of this year.

My current deal is for £60k over 12 years on a house worth approx £300k.

I have been overpaying by approx £100/month.

Now when I set-up my next deal, should I go for another 12 year deal OR should I look at say a 25 year deal.

My thoughts are that if I have a 25 year deal, my payments would be much less and I could afford to overpay even more. Because over-payments come straight off the mortgage, would I actually be paying off my mortgage even quicker this way or would the additional interest charged for a 25 year term negate this advantage?

Your thoughts would me most appreciated.

CLAPTON

if the APR is the same and there are no penalties for over payments there is no difference between the two methods. It doesn't really mean anything to say ovepayments come straight off the mortgage ... its just that the interest gets paid first for the month and the surplus goes to repaying the capital whether is paid in one sum (the normal repayment ) or two sums the normal repayment and then an overpayment.