Help for a new homeowner

humey86

Hi,

I am a little embarrased about posting this but im getting conflicting answers from friends and family members. We have been living in our 1st home for coming up to a year and its been fantastic, especially after having some horrendous renting experiences!

We took a 25yr mortgage with Accord, 5% deposit so we were hit with higher interest rate. We went through an advisor and I do this we were taken as mugs a little as speaking to others it seems they have larger mortgages but with less monthly payments.

House value was £169k and we pay £817 a month. Its well within what our budget (22%) but it seems high compared to others.

We are on a fixed 2 yr and will be working with our advisor to find a new fixed deal once this is up. What I am asking is if our monthly payments will go down over time? Is there any smart advice that you can pass our way to help with reducing payment amount etc?

I imagine this is the golden question!!!

foxy-stoat

Overpay is the best and only advice. If you manage to get a better interest rate, you will when your LTV increases, keep your mortgage payments at the higher rate.

Tap into a mortgage overpayment calculator and see how much interest (over the term) you will save by overpaying by only £50 or £100 a month.