Short term or long term?

Offerking

My current mortgage balance is £170k with a term of 21 years & 4 months. My monthly payment is £1,039.18. I currently overpay £460.82 making my monthly total £1,500. The maximum term I can apply for is 37 years & 3 months which would reduce my monthly payment to £787.16 meaning I can over pay by £712.84. I’m currently on a 2 year fixed deal ending August 2025 at a rate of 4.49%. Would it be better to have a longer term so I can pay off more of the mortgage in the fixed 2 year period? I can always revert back to a shorter term when/if interest rates come down. Any pitfalls i’m not seeing?

CSI_Yorkshire

How much more of the mortgage would you actually be paying off in the 2 year period?

Taking a longer term reduces the amount of capital you are scheduled to repay each month, not the amount of interest.  Much of your overpayment will just be putting you back to the situation you would have been in anyway with a shorter term.