Mortgage Payment period

PeterL

I am about to remortgage and going for a 10 year fixed rate at 5.6% - no messing about.

I have presently 20 years left on current mortgage - slightly lower rate but not much different.

I intend to overpay when I can afford it as I have done on and off on current package. Should I take out a 20 year again giving similar monthly payments and overpay when I can afford to or go for a 25 year reducing my monthly payments and giving us more flexibility. I can then overpay the difference for the majority of the time and with further overpayments on top of that when I can afford it as before.

I assume I will switch after the ten years - will there be any difference in terms of the amount I will have paid off between the two options. Do overpayments go towards the capital or interest?

minimike2

If you are in that position where you can regualry overpay I see no real benefit of increasing your term.

Make sure you check the allowance for overpayments too, as 10 year fixes usually are not very fliexible