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Early replayment
Summer001
Posts: 1 Newbie
Hi,
i have recently taken out mortgage of £250k and want to make an overpayment of £15k. Therefore my mortgage will be reduced to £235k.
I'm on a 5 year fixed at 2.74% with Santander, 30 year term.
They then offered me the option of reducing my mortgage term OR reduce monthly amount. So far, reading other posts on this forum, it encourages me to reduce the term.
(This would then reduce my term by 36 months OR I pay £42 less a month).
Is this the correct thing to do? Or would it be better to put any overpayment money into a savings account (seeing that my interest rate is luckily only 2.74% - and savings account can offer me around 4.3%).
Any help would be greatly appreciated
i have recently taken out mortgage of £250k and want to make an overpayment of £15k. Therefore my mortgage will be reduced to £235k.
I'm on a 5 year fixed at 2.74% with Santander, 30 year term.
They then offered me the option of reducing my mortgage term OR reduce monthly amount. So far, reading other posts on this forum, it encourages me to reduce the term.
(This would then reduce my term by 36 months OR I pay £42 less a month).
Is this the correct thing to do? Or would it be better to put any overpayment money into a savings account (seeing that my interest rate is luckily only 2.74% - and savings account can offer me around 4.3%).
Any help would be greatly appreciated
0
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