Mortgages- shorter term or overpayments

[Ladyof]

I am looking to move soon and our mortgage will increase by quite a lot. I'm thinking of paying about 1000k a month for it and I dont know if it's best to take it over say 16 years with higher payments or say 22 years with lower payments and then just make overpayments- which saves more money over the long term? Or does it work out the same?

We have a low LTV so I can be flexible with what I want.

Overpayments, because it gives you flexibility if you really need the money for something else.

I’d also second overpayments so that if you need to you can drop to the standard payment or have a payment holiday.

Agree with pp, but most mortgages have an overpayment limit e.g. 10% loan value (date calculated at and specifics vary so check) so you need to ensure the amount you can overpay allows you to do what you want. Play with the term length until you find the ideal balance, but overall paying it off as quick as you can will cost you least.

Overpayment unless you have a lot of savings to see you through a job loss or ill health. If you have a couple years income saved you can commit to paying more, otherwise overpayments when you have the money gives you flexibility.

Overpayment. We had been overpaying by a lot up until April when my income stopped for 6 months. We were able to just pay the actual payment without any problems and therefore rode Covid money troubles out very easily.
We’re now in a position to pay it off, thanks to a windfall and I’m so excited about being mortgage free!

Yep agree overpayments as well - as then you can drop those if you need to.

You can go for a bit of both. Go slightly shorter term and also make some overpayments.
It’s no good leaving yourself with no safety net if things go pear shaped....but at the same time, no point having a longer term than needed and lots of mortgages have a limit to the amount of overpayment.

Whenever I remortgaged, I always looked to reduce the term a bit too...essentially making an extra repayment at the same time, to reduce the term. I would then also make over payments when I could too. Both are possible..it doesn’t have to be fully one or other. The balance can be be determined by how risky your fixture is looking at the moment, plus how much fincnaicl self-discipline you have over yourself re overpayments.

I have both
15 year term and overpay by about 8% a month