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    • lucy1981
    • By lucy1981 7th Dec 17, 2:38 PM
    • 22Posts
    • 8Thanks
    Newbie considering overpaying.
    • #1
    • 7th Dec 17, 2:38 PM
    Newbie considering overpaying. 7th Dec 17 at 2:38 PM

    Wondered if any of you could give me a bit of advice about what is best to do with remortgage/overpaying on our home?

    Property value: 235,000
    Outstanding mortgage in total 175,000, so LTV approx 74%

    Outstanding mortgage is currently split over two parts with Clydesdale,

    Part 1: 95,000. Mortgage to 2035. On fixed rate 3.79% to Feb 2019. Monthly payment 612.40. (Early repayment charge before this 2k)

    Part 2: 80,600. Mortgage to 2040. On fixed rate 2.49% to March 2018. Monthly payment 384.

    We are paying about 1000 a month at the moment which will go up to 1100 in March when part 2 to goes onto standard variable rate. We can afford to pay 500 a month overpayment. In January 2019 when we won't have any repayment charges we're thinking of then remortgaging the full amount with the cheapest lender, but not sure if the best way to pay the mortgage off is keeping the term the same i.e. 17 years and making regular overpayments to cut interest and pay off mortgage quicker, or if its better to shorten the mortgage term?

    Is it just different ways to the same result? Does overpaying have the same same result as decreasing the term but leaves flexibility just in case?

    So confused!! Any advice welcome
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