Weird Mortgage question

[KatyMac]

Currently we have 9 yrs to run on out mortgage & owe about £90,000

If I were to remortgage in my name (using my income only) could I extend it until I am 65 (ie 25 yrs) & so reduce my payments?

& if I do that & I over pay each months could i end up paying less interest?

[somersetmum]

this should help you with the calculations.
I think the answer to the first question is yes, but it would add a lot more interest if you didn't overpay.
The second question will depend on how fast you overpay, but the calculator should help.

[KatyMac]

That really helps - thanks

[CantSleepWontSleep]

I can't see how you would pay less interest, as you will be paying based on an annual interest rate, which will be the same regardless of whether the mortgage has a 9 year term or a 25 year term.

[CarGirl]

but your paying interest for 25 years rather 9 years.........and it is calculated daily

[KatyMac]

If I over paid by 650 pcm - I would pay the same amount of interest as I do now - so I would have to over pay by more than that

But my new mortgage payment (including the O/P) would be about £250 more than it is now

Hmm it needs thought

[CarGirl]

presumably in say 15 years time then proportionally £250 would be a small amount and you cold overpay by more?

[KatyMac]

Well look at the second calculator put 90,000 5% & 9yrs (you have to put £1 in the Overpayment field) total paid back approx £112,000

Then put 90,000 6% & 25 yrs & £660 as O/P total paid back approx £112,000

[KatyMac]

I'd only pay £10,000 more if I kept at my present rate (which would be a really silly thing to do)

[KatyMac]

Oh

That might stuff it up

[CantSleepWontSleep]

If you have cash available that you could use to overpay, then have you had a look at offset mortgages - makes the cash work for you as soon as you have it?

[CantSleepWontSleep]

You'd need a 'flexible' mortgage to be able to overpay as much as you like every month. We overpay by a few thousand each month no problem with one of these.

[KatyMac]

I haven't really
I was just trying to see what would happen

I'm about to have a wage (rather than S/E) & would it be worth lengthening my mortgage & how much it would cost to move the mortgage into my name

But it would have cost too much to extend it

So I wondered how much I'd have to over pay to make it work (iyswim)

[KatyMac]

I currently have a flexible mortgage & don't over pay - but I think I will (if only a few pounds)

[bozza]

Might be worth waiting until your current deal has expired?

[KatyMac]

May......