Reduce term or lower the payments

PhilStation

dimbo61 wrote: »

Have you got emergency savings ?
What happens if the boiler breaks down or you need a replacement car !
Why not overpay 50% and save 50%
Have you looked at Offset mortgages ?

We have saving funds already for:

> Emergency Fund
> Christmas Fund
> Holiday Fund
> Home Improvement Fund
> Annual expenditure Fund (Car Insurance, etc)
> Savings Fund (that the idea is not to touch)

So we have arrangements in place to cover our less regular outgoings and emergencies.

The question arose out of the opportunities that are presented by the lower interest rates. We now have the opportunity to keep our repayments the same but also reduce the term or, as above, simply overpay.