Help with mortgage advice!

keavakeava Forumite
98 Posts
Part of the Furniture 10 Posts Combo Breaker
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Hi
I hope someone can help me with mortgage advice.
My house is worth £350000. There’s a £208000 mortgage on it.
There are 15 years left on it.
We can afford to pay £1500 per month.
I prefer fixed mortgages as I know what to expect and usually fix for 2 years.
The best deal so far is Yorkshire building society at 1.39%.
So my question is do I remortgage for the 15years (£1289per month) and over pay by £211?
Or reduce the term of the mortgage to 12.5years with no overpayment?
I have gone through the numbers but just can’t decide.
Thanks for your help.

Replies

  • spadooshspadoosh Forumite
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    It doesnt make much difference.

    The general guidance is to pay as little as possible and top it up as if things change you can reduce the payments. Personally for me, if money is knocking around ill find something to spend it on so i took the shorter term option.
  • YouthgonewildYouthgonewild Forumite
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    I'd remortgage over the longer term of 15 years and OP. That way if money is tight in future you've left yourself some wiggle-room :)

    That's a good interest rate over 15 years btw
    Mortgage balance October 2015: £99875
    Mortgage balance November 2017: £97583

    Mortgage balance November 2018: £90952.08
    Mortgage balance December 2018: £90470.65
    Mortgage balance June 2020: £79561.39
    Mortgage balance October 2020: £77686.25
  • YouthgonewildYouthgonewild Forumite
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    Sorry I read your OP wrong, 'tis a 2 year fix not 15!! :rotfl:

    Still I'd go for the longer term and OP. You'll pay more interest but you'll have peace of mind knowing you can reduce payments if necessary.
    Mortgage balance October 2015: £99875
    Mortgage balance November 2017: £97583

    Mortgage balance November 2018: £90952.08
    Mortgage balance December 2018: £90470.65
    Mortgage balance June 2020: £79561.39
    Mortgage balance October 2020: £77686.25
  • JimmyTheWigJimmyTheWig Forumite
    12.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    Still I'd go for the longer term and OP. You'll pay more interest but you'll have peace of mind knowing you can reduce payments if necessary.
    If you overpay to match what you would have paid with the shorter term then you won't pay more interest.

    Though at 1.39%, you could do much better than that with a regular saver so why overpay at all? (I understand this sentiment may be frowned upon on the MFW board.)
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