Remortgage?

Mr_no_dough

Good morning,

Me and my partner purchased our first home together last October, things are going fine and we are getting used to all the bills etc, However every time I speak to someone and they ask me how much I'm paying they always have a shocked look on their face, we could only muster up a 5% deposit on our place so our repayments are obviously quite high, however I do think we took the wrong option with a shorter term mortgage where payments are obviously higher,

My question is, there is no exit fee on the deal we had from our mortgage provider so do you think its worth asking to change terms and/or asking them to extend the mortgage?

The answer should be resoundingly simple however I am skeptical that we are only a few months in and don't want the mortgage provider to think or assume that we are having difficulties financially. Which we are not. We were blessed with our first child last June so obviously if we could save a few pounds every month that money could be better spent elsewhere

Ant advice much appreciated

anselld

Higher payments due to shorter term is not "spending". It is in fact saving money in the long term since you will pay less interest over the life of the mortgage.

Your friends are incorrect to imply you are paying too much (unless your interest rate is also high) and you are incorrect to think of it as additional spending. It is repayment of capital.

If you can afford it then continue, you will benefit in the long term.

Thrugelmir

Mr_no_dough wrote: »

My question is, there is no exit fee on the deal we had from our mortgage provider so do you think its worth asking to change terms and/or asking them to extend the mortgage?

Respite maybe short lived if interest rates were to rise. If you can continue to repay at the current level then you will reap the benefits in the longer term. With flexibility still to adjust if needs must.

fossman

Having a low mortgage repayment doesn't mean anything to be honest.

I currently pay £390 per month which sounds low but I have 27 years left to pay (my total payments over the remaining 27 years will be £126,360).

When I remortgage later this year I will hopefully reduce the term down to 11 years and my repayments will change to £670 (total payments over the 11 years will be £88,440).

The repayments will be a lot higher but I will be saving £37,920 in repayments.

dimbo61

If you can overpay the Mortgage every month provided you do not have any other expensive debt ?
We Saved over £50,000 in interest by reducing our mortgage term from 22 years down to 10 years .
This increased the mortgage by £500 a month but we cleared our debt in 10 years

Thrugelmir

fossman wrote: »

The repayments will be a lot higher but I will be saving £37,920 in repayments.

That's all interest paid out of taxed income.