mortgage renewal advice 29 January 2021 at 7:44PM in Mortgages & endowments 3 replies 131 views

hoverbo

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,

Thrugelmir

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

@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/

dimbo61

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.