Re mortgage or stick with interest only and overpay?

col81

getmore4less said:

Your rate at ~3.35% is a bit steep  even for 80% LTV
Which lender and product?
they may have something.

An option might be to look at lenders with a track(no ERC) and fix options.
Get the rate down on repayment then fix when you hit the 75% if not already there.

The deal i had was with Engage credit it has changed hands about 6 times and tracks the Libor rate. I had bad credit when i got this mortgage but all that is history. Sorry but i am not sure what ERC means. Thank you for any advice

[Deleted User]

thats a pretty decent rate for that kind of lender but there are much better options if you are now in a good credit position.  
If you cant get to LTV then with a bit of luck you could move to a no set up cost no exit fee deal at 2%, and then once you hit 75% move to a no set up cost deal at 1.7-1.9% (depending how long you fix for).    
Most of the time legals will be free but obviously a lot of brokers have a cost so you'll need to factor it in.   

getmore4less

Track and fix or wait till 75%, 
How much can you throw at this a month to get you to 75% LTV?
(you might be there already worth a check)

£400pm won't be enough longer term unless you can get a 30y-35y full term.

For a track and fix  look at this option from Barclays as a benchmark.
tracker at 80% 2.29% £999 fee
reward  7y fix for 1.49% £749 fee

As another example Nationwide track and switch
2.54% no fee 80% no ERC 2y tracker, at 75% product switch to
1.54% £999 fee(cheaper than the no fee option 1.79% with £110k borrowing 75% 25y)

You could look at multiple lenders for the track and switch but single lender with good 75% retention rates is probably the way to go even if their initial tracker is not the best out there to start you off.