Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • VeganRunner
    • By VeganRunner 4th Jan 18, 4:25 PM
    • 1Posts
    • 1Thanks
    VeganRunner
    Overpay or Shorter Mortgage Term
    • #1
    • 4th Jan 18, 4:25 PM
    Overpay or Shorter Mortgage Term 4th Jan 18 at 4:25 PM
    Hi All,
    I will be remortgaging in the latter part of this year so I am being very premature. I've over paid my mortgage mostly as in an ideal world I want to be mortgage free at 45 as long as i don't move house. I'm 31 now.
    I wanted some advice to what would be better financially, keeping the term of my mortgage so will be 23 yrs and over pay like I do now, or shorten the term of my mortgage meaning I potentially wouldn't over pay but would be a shorter term.
    I'm not great with my finances, I'm self employed, no pension, little savings hence why i want my mortgage done asap.
    Any advise welcome.

    Thanks
Page 1
    • Mr_Curious
    • By Mr_Curious 4th Jan 18, 6:07 PM
    • 93 Posts
    • 32 Thanks
    Mr_Curious
    • #2
    • 4th Jan 18, 6:07 PM
    • #2
    • 4th Jan 18, 6:07 PM
    If it were me, I'd keep the longer term and make the over-payments. Everyone has different priorities but I would like to know that if anything unforeseen should happen that the less amount will be easier to deal with... That's my theory anyway
    • Thrugelmir
    • By Thrugelmir 4th Jan 18, 6:10 PM
    • 58,944 Posts
    • 52,271 Thanks
    Thrugelmir
    • #3
    • 4th Jan 18, 6:10 PM
    • #3
    • 4th Jan 18, 6:10 PM
    Overpay. Why commit yourself to a level which one day maybe unaffordable. Interest rates aren't going to remain this low indefinately. Being self employed isn't without it's downside risks either.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ValiantSon
    • By ValiantSon 4th Jan 18, 8:28 PM
    • 2,023 Posts
    • 1,867 Thanks
    ValiantSon
    • #4
    • 4th Jan 18, 8:28 PM
    • #4
    • 4th Jan 18, 8:28 PM
    As others have said, keep the term and overpay. Doing this allows you to reduce the mortgage while having a safety net of returning to the original payment schedule should your financial situation take a turn for the worse.
    • strawberries1
    • By strawberries1 7th Jan 18, 7:58 PM
    • 677 Posts
    • 146 Thanks
    strawberries1
    • #5
    • 7th Jan 18, 7:58 PM
    • #5
    • 7th Jan 18, 7:58 PM
    Thanks. this has helped me.
    I'm in the process of buying and settled for 1.79% with #749 fees for 60% LTV for 20yr. I'll change it to 25yrs.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,287Posts Today

6,843Users online

Martin's Twitter