Mortgage Overpayments

Beaumont176

Good morning,

Looking for some advice / re assurance!
My wife and I have been overpaying our mortgage for the last 4 years paying in 10% of the loan amount. Due to my job we were tied into a 5 year fixed with Natwest 1.97% interest.

I am/was confident we are doing the right thing. For the last few years I was only interested in the loan amount decreasing which it obviously has done considerably. However this year I realised that although we are reducing our loan amount our fixed term is staying the same and Natwest are reducing our monthly payments each year to compensate for this.

Am I right in saying once our fixed term with Natwest finishes we will remortgage with another company on another fixed rate which then the term of our mortgage should then be reduced/recalculated is this correct? 

The current term would only be valid if we stayed with Natwest for the duration of our mortgage?

Kind regards,
Scott.

Bargainhunter30

You can choose your term with a remortgage. We had to extend ours due to affordability but you can also ask to reduce it. You should also be able to ask with your current mortgage to reduce the term rather than reduce the monthly payments with each OP,  but often you have to speak to the bank to do this.