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mortgage renewal advice

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I am coming to the end of my 2yr fixed deal, my house is worth £220k and i have £50k left on my mortgage but i want to pay a lump sum of 15k, i have 17 yrs left on my mortgage.
I have been advised to go on a 2yr tracker mortgage and pay as much off as i wish, eg £15k, what would you advise as having 17yrs seems a long time,

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 30 January 2021 at 12:12AM
    By overpaying with a lump sum £15k your monthly commitment will naturally fall. There's nothing to stop you then overpaying the mortgage (by whatever you can afford) every month. The term remaining will then naturally shorten. Alternatively ask the lender to shorten the mortgage term. 
  • K_S
    K_S Posts: 6,877 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    @hoverbo You could just overpay and achieve the same effect as reducing the term.
    https://blog.moneysavingexpert.com/2014/10/dont-shorten-your-mortgage-term-if-you-can-overpay/

    I am a Mortgage Adviser - You 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. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The beauty of a tracker deal is the ability to overpay as much as you like.
    It's only a 2 year deal and then you might end up on the SVR while having a small balance so not worth moving lenders !
    In uncertain times having a good emergency savings pot is a very good idea just in case.
    Does your lender offer Offset mortgages ?
    Well done on reducing your mortgage debt and if you can clear the mortgage as soon as possible then being mortgage free is a good feeling.
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