Santander Overpayments used to reduce term or reduce monthly payments?

29 Posts

Hi
Currently I chuck 1500 extra at my mortgage a month and opt to reduce my payments. I'm now paying 616 a month and it's been falling steadily. I'm coming on five years into my mortgage with the fixed deal ending in November.
I know interest rate savings are higher if you reduce the term but I like reducing monthly payments at least whilst they are over 500 as I then have a higher disposable income each month. I guess I can still reduce the term when I remortgage anyway. I have about 129k debt outstanding. I started with 230k. Anyone else preferring to reduce monthly payments this way ? Is this wise? I hope to pay my mortgage off in five years so I will need to look at reducing the term soon
Currently I chuck 1500 extra at my mortgage a month and opt to reduce my payments. I'm now paying 616 a month and it's been falling steadily. I'm coming on five years into my mortgage with the fixed deal ending in November.
I know interest rate savings are higher if you reduce the term but I like reducing monthly payments at least whilst they are over 500 as I then have a higher disposable income each month. I guess I can still reduce the term when I remortgage anyway. I have about 129k debt outstanding. I started with 230k. Anyone else preferring to reduce monthly payments this way ? Is this wise? I hope to pay my mortgage off in five years so I will need to look at reducing the term soon
0
Latest MSE News and Guides
Replies
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 @£87460 SoFar
Am a single mom of 4.
I guess the less debt you have the less you can overpay a year before charges
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 @£87460 SoFar
Am a single mom of 4.