mortgage term

BarelySentientAI

BikingBud said:

BarelySentientAI said:

Martico said:

Although, BB, you'll also pay less interest overall if the balance is reduced when overpaying rather than the term

BB has an odd thing in their head about overpayments being stolen somehow by lenders.

Their point is usually valid, just poorly explained with occasional incorrect assertions.

That's the evidence but as BSAI seem to come and continually try to rubbish the idea one must consider that they have a vested interest and are possible part of the lending system.

There's the cheap retort.  "If you don't agree with me you have a vested interest and/or are a shill".  Behave.

When did "their point is usually valid" become "rubbishing the idea"?  That's a very odd assertion.

Our point of disagreement is that you keep insisting that lenders are somehow breaking contracts to maximise profits (or at least refusing to comply with aspects of the contracts, which is essentially the same thing), whereas I content that the mortgage term is a contractually agreed item and there is no automatic ability for you to insist monthly payments are maintained after overpayments. 

In fact, your insistence could, with some lenders, result in someone unexpectedly being charged an ERC.  Really not good advice on a money saving site.  Otherwise, your points are broadly accurate.


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Christine24

Thanks for all comments, So at this moment would you fix for 2yrs no fee or 5yrs no fee, what do you think will happen with interest rates?

BarelySentientAI

Christine24 said:

Thanks for all comments, So at this moment would you fix for 2yrs no fee or 5yrs no fee, what do you think will happen with interest rates?

Your guess is as good as ours.

Do you want to gamble knowing what your payments are going to be for three extra years against whether deals are better or worse in two years' time?

It sounds like things are relatively tight for you if the broker is going for such a long term, so certainty of payments might be better, but only you can decide that.