Owning your own home

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Dammit

Two options with the same mortgage (2 year fixed at 1.14%):

Select a term of 10 years, pay £1,200/month
Select a term of 20 years, pay £650/month and overpay up to the £1,200.

Why am I considering option 2? Because overpayments come off the capital, not a combination of interest and capital.

Would this make sense to do?

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dst2 in reply to @Dammit

yes, for the flexibility. lot of fixed term limit the overpay to 10% of the amount owed each year, check you're not running into that and adjust the years accordingly.

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Dammit in reply to @dst2

There is an appeal in setting the period to ten years and just paying the £1,200, having that cost gone would be nice. That said I probably spend more at Pret each month than the current mortgage costs me, so it's not a huge thing I suppose.

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