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Remortgage time.

Hello,

I’m just about to remortgage, probably pushing towards a 5 year deal, as I can’t see much upturn in the economy with Labour in charge. 

So not seeing much point in doing 2 just to remortgage onto possible worse deal.

my question is what are peoples thoughts on term of mortgage.

should I just keep it at 30 years and keep trying to overpay my 10% or reduce the term and still overpay.

thanks in advance.

Comments

  • la531983
    la531983 Posts: 3,442 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Nobody in here can give you any sensible answer without knowing your specific circumstances.
  • Carl2510
    Carl2510 Posts: 537 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    la531983 said:
    Nobody in here can give you any sensible answer without knowing your specific circumstances.
    That’s fair enough. Thanks
  • born_again
    born_again Posts: 21,274 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    I aways think the longer the fix the better. Just more stability on knowing what you will be paying.

    But yes, keep overpaying. It is the biggest saving you will ever make in your life.
    Life in the slow lane
  • Yorkie1
    Yorkie1 Posts: 12,212 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I have always preferred to overpay without formally reducing the term of the mortgage. If you overpaid on the original term, at the same amount as you would pay for a revised shorter formal term, then you end at the same point in due course.

    But retaining the original term gives you the flexibility of reducing your overpayments if you need to for any reason.

    If you change lender at the end of a fixed term, and therefore remortgage, then the new lender will do a full affordability check. 

    However, if you stay with your current lender, a simple product switch involves no further checks. But a formal reduction in term would be a full affordability check in all likelihood.
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