Reduced Interest or Reduced Term

Langy

I haver recently started overpaying on my Nationwide repayment mortgage - I receive a letter each month telling me that my monthly payments have reduced. I am informed that if I want to reduce the term of the mortgage rather than the monthly payment that I should contact them.
My financial circumstances are about to change and as such it would suit me to reduce the amount I pay back each month, but I jut want to be sure that this is the best option. I am on a fixed rate until 2009. Any advice would be most welcome.

Kaz2904

If you reduce the payments then you will still end up paying the mortgage for however long you took it out over.
If you reduce the term then your overpayments will have saved you money. You can stop any overpayments and just pay what you originally agreed to pay. If you are about to feel a pinch then I would look very carefully at your options. Work out a budget that you can live within. Then work out your mortgage money and jiggle it with reduction of termvs reduction of monthly payment. The most important thing to do is to keep making overpayments whenever you can afford to, not just thinking- I've had to reduce my monthly amount so I must be skint so I'll spend this spare 50p on tat.
Not much help I know! TTFN, Kaz.

Langy

Thanks for the advice Kaz - much appreciated.