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Advice on Re-mortgaging
hotdog30
Posts: 3 Newbie
Hi Guys,
18 months ago I took out a mortgage for £63500 over a 25 year term at a 2 year fixed rate of 4.99%. I am going to be looking to re-mortgage with a another lender soon but need advice on weather to lower the term down to 20 years and pay a higher monthly payment or continue on the 25 year term and pay off extra each month.
This is probably very obvious to most of you but I'm really not sure.
Thanks
18 months ago I took out a mortgage for £63500 over a 25 year term at a 2 year fixed rate of 4.99%. I am going to be looking to re-mortgage with a another lender soon but need advice on weather to lower the term down to 20 years and pay a higher monthly payment or continue on the 25 year term and pay off extra each month.
This is probably very obvious to most of you but I'm really not sure.
Thanks
0
Comments
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Long term there wouldn't be much difference. All you need to do is check on the stance of theparticluar lender you're looking at, in case they have any restrictions on overpayments - ie number per year, minimum amount etc.
The advantage of keeping the term the same is that you're in charge of your money, rather than committing to a higher monthly repayment you have the flexibility to not make an overpayment if you wishI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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