Advice needed with regards to best way to reduce mortgage debt

qwertyqwerty Forumite Posts: 129
Part of the Furniture 10 Posts Combo Breaker
Hi all, some advice please.  We have approax 43k left to pay on our mortgage and our current deal expires next month.  We are in a position where we could just about pay it all off, but then it would leave us with no emergency funds.  I'm now thinking to take out a new deal but with a mortgage of 20k.  If i do this, will i lose out by taking a longer term mortgage (30 yrs).  The reason i want to do this is because of the low monthly payments.  I can also make my 10% overpayment and comfortably be in a position to clear the mortgage in 2 yrs.  Would it make more sense to take  shorter term mortgage, or pay it all off but use credit cards (which i can then balance transfer to a 0% interest card) to cover the 20k.  Hope all that makes sense. Thanks


  • MorningcoffeeIV
    MorningcoffeeIV Forumite Posts: 1,525
    1,000 Posts First Anniversary Name Dropper
    Not really.

    30 years is a huge term for such a small debt, if you even get it. And if you can repay in 2 years, why go for 30?

    You won't be able to clear the mortgage with a credit card, unless you use a money transfer.

    If you're no longer paying a mortgage, you can quickly rebuild savings, although you shouldn't leave yourself with nothing.
  • South_coast
    South_coast Forumite Posts: 4,520
    1,000 Posts Third Anniversary Name Dropper Photogenic
    I don't think many lenders will offer mortgages as low as £20k. Why not use the cash you have to pay down the mortgage, but keep back as much as you need to feel comfortable for emergencies etc, then just go onto the SVR while you pay off the remainder? Yes, the headline mortgage rate will be higher, but on a low balance it'll be a lot less than the cost of remortgaging
    Mortgage start: £65,495 (March 2016)
    Cleared 🧚‍♀️🧚‍♀️🧚‍♀️!!! In 5 years, 1 month and 29 days
    Total amount repaid: £72,307.03. £1.10 repaid for every £1.00 borrowed

    Finally earning interest instead of paying it!!!
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