FT Mortgage - Lump sum early repayment - Help needed

Hi people

I recently purchased my first property at the age of 28. The purchase price was £199,950. I deposited 20% with a borrowing of £159,950. I have a 2 year fixed rate deal at 2.34%. My monthly repayments are approx £704 with my first repayment being higher. I have the option to make 20% overpayment on the outstanding balance per year without any additional charges.

I made my first repayment in February 2019. My current outstanding balance is £159,563.14. I wish to make a lump sum overpayment of between 10% and 20% in both the first and second year.

If I overpay 10% today the amount is £15,956.31. My question is should I reduce the term down to 21 years or reduce my monthly repayments to approx £634.29 bearing in mind that I will be remortgaging at the end of my 2 year fixed term period and will be making more lump sum overpayments in the first two years.

Which option is financially better for me? I want to pay the least interest possible and clear my mortgage as soon as possible.

I have tried to use the calculators online but they dont take into consideration that my mortgage is in a fixed period and interest rates will more than double after the first two years.

Thank you in advance.

:beer:

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