Mortgage Overpayments

nebulag

Hi, 
I am interested in getting some 3rd party opinions on my current situation regarding  my mortgage.

I am 2 years into my mortgage and I am due to renew in the next few months.

The last 2 years I have paid £515 a month on a fixed term mortgage with a 40 year policy.

I would ideally like to be paying roughly the same amount every month at £515.

My current thought process is to drop down the monthly payment to the lowest they will offer me. Which I believe will be £450 per month but over paying the difference each month back to £515. £65 over payment. Paying off more of the principal. In the long term reducing how many years I am paying the mortgage for. 

The new term would be 5 years fixed term at 38 years. Which I would change again in 5 years. 

Thanks 

Thrugelmir

Your default monthly payment will be determined by the new product you select. You are free to overpay by whatever amount you wish, providing it is within the lenders criteria. On a 40 year term the earlier and more you can overpay. The greater the ultimate saving will be. As at the moment the majority of your monthly payment will be interest rather than capital. While savings may appear small initially, over the years they will snowball. 

strawb_shortcake

I'd ask your broker to play around with some numbers, for myself having a 38 year debt would not be for me.
We had to take a mortgage out over 32 years, after the two year fix I asked about paying an extra £50 per month and was able to knock 7 years off. I know you want to keep the repayment amount the same, but I'd suggest looking at all your options before committing to lower payments.