{"id":120830,"date":"2021-06-21T13:02:07","date_gmt":"2021-06-21T06:02:07","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-we-continue-making-mortgage-overpayments-or-decrease-the-term\/"},"modified":"2021-07-18T17:05:17","modified_gmt":"2021-07-18T10:05:17","slug":"should-we-continue-making-mortgage-overpayments-or-decrease-the-term","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-we-continue-making-mortgage-overpayments-or-decrease-the-term\/","title":{"rendered":"Should we continue making mortgage overpayments or decrease the term?"},"content":{"rendered":"


\nWe could go with a period of 17 years or reduce our term and increase our monthly paymentsQ Our current mortgage deal is due to expire in September. We have 17 years left on the term and a \u00a3160,000 amount outstanding. At present, our monthly payment amounts to \u00a31,050 a month. However, for the past 12 months we have been overpaying by approximately \u00a3800 to \u00a31,000 a month. We are looking at paying off our mortgage as soon as possible, so my question for our next mortgage is, should we continue with a term of 17 years and continue to make overpayments, or should we decrease our term by a number of years and increase our monthly payments and then make any additional overpayments if we are in a position to do so? I am not sure which one would be the most beneficial approach in terms of paying off the capital quicker and reducing the interest that is added monthly.MFA Both overpaying and shortening the mortgage term are equally beneficial and do exactly the same thing. They both reduce the overall amount of interest paid on the mortgage and shorten its term. Using the overpayments calculator provided by London & Country Mortgages, in your case, continuing to make monthly overpayments of \u00a31,000 and assuming an interest rate of 2.5%, would mean that you would pay \u00a321,038 less in interest and reduce the mortgage term by nine years and seven months. Continue reading…
\n
\nSource : theguardian.com
\nRead more…Should we continue making mortgage overpayments or decrease the term?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

We could go with a period of 17 years or reduce our term and increase...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120830","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vqS","jetpack-related-posts":[{"id":9530,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-do-10-penalty-free-mortgage-overpayments-mean-in-real-terms\/","url_meta":{"origin":120830,"position":0},"title":"What do '10% penalty-free mortgage overpayments' mean in real terms?","date":"August 14, 2013","format":false,"excerpt":"\r We are re-mortgaging for the first time, but are unsure whether the offer is based on 10% of the capital owingQ We are about to re-mortgage for the first time. 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We have extra cash as a result of this \u2013 about \u00a3500 a month when we tighten our belts \u2013\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":34694,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/we-may-have-to-let-our-house-next-year-will-that-affect-our-remortgage\/","url_meta":{"origin":120830,"position":4},"title":"We may have to let our house next year \u2013 will that affect our remortgage?","date":"November 17, 2016","format":false,"excerpt":"\r My girlfriend and I want to move to the continent and wonder if we need to get a buy-to-let deal when remortgagingQ My girlfriend and I got our first mortgage of \u00a3205,000 on a house in February 2015. 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