Hi,
My 2 year fixed rate is coming to an end in July and L&C have been contacting me advising this and asking if they can look for a new deal etc. I've no problem with this so they are going away to do this.
They come back with some figures and advised a longer fixed period. My question is would we be better off having a lower monthly repayment over the longer term which is currently 33 years and overpaying every month (the difference being what we pay now) as we are comfortable paying this. Or would it be better to continue paying what we pay now and knock the term down from 33 to 23 years.
I've tried to do all the overpayment calculators and what not but there doesn't seem to be much difference in doing it either way. Maybe a small small saving if you reduce the term by 10 years but on the flip side your paying the higher amount.
We are only 2 years into our first ever mortgage so this is all relatively new to us in terms of remortgaging to a better deal etc.
We currently pay £580 a month with nationwide on around 4.24% I think which was the best rate available as FTBs.
L&C have come back with 2.41% fixed with Barclay's for 5 years at £452 a month over 33 or £583 a month over 23 years. No fees etc just a £35 telegraphic transfer fee.
Any advice would be very much appreciated.
Thanks
My 2 year fixed rate is coming to an end in July and L&C have been contacting me advising this and asking if they can look for a new deal etc. I've no problem with this so they are going away to do this.
They come back with some figures and advised a longer fixed period. My question is would we be better off having a lower monthly repayment over the longer term which is currently 33 years and overpaying every month (the difference being what we pay now) as we are comfortable paying this. Or would it be better to continue paying what we pay now and knock the term down from 33 to 23 years.
I've tried to do all the overpayment calculators and what not but there doesn't seem to be much difference in doing it either way. Maybe a small small saving if you reduce the term by 10 years but on the flip side your paying the higher amount.
We are only 2 years into our first ever mortgage so this is all relatively new to us in terms of remortgaging to a better deal etc.
We currently pay £580 a month with nationwide on around 4.24% I think which was the best rate available as FTBs.
L&C have come back with 2.41% fixed with Barclay's for 5 years at £452 a month over 33 or £583 a month over 23 years. No fees etc just a £35 telegraphic transfer fee.
Any advice would be very much appreciated.
Thanks