OK if you know about mortgages can you help me with this one

[Twiglett]

currently remortgaging

was going to do it for 20 years (which is what we have left on mortgage)

imagine that would cost £1000 per month (for arguments sake)

Just thought that maybe instead I should do it over 25 years .. bringing the payment to £900 and pay an additional £100 per month which should go directly against capital

would that in the long-run mean that the mortgage costs less?

ignore .. I've worked it out its a minimal difference

we had a play around on the oneaccount website which allows you to look at ofsetting and paying in extra stuff, might be worth a look

we've just fiddled with ours we did have a 15 year mortgage but were over paying by £200 a month, we have borrowed a bit more but reduced the term to 12 years and this actually worked out better in interest terms.

yes the one account site is quite helpful for putting in different figures.

here

Couldn't you ask an IFA?

I am not really sure. But you will be spending a greater % of the £900 on interest, won't you? I will be interested in what answer you get because we are remortgaging in the summer and we will have 15 years to run then, so could maybe up it to 25 and pay off extra capital if your scheme is feasible.

I'd go for a longer term because it gives you options. Shorter term = min monthly payment could become unmanagable if rates rise. So, go for longer term but overpay then you're not stumped too much if rates rise as can still aford min monthly repayment. Whih is, of course, what we're doing

We took Tinker's approach and got a 25 year mortgage term and overpaid each month at an amount we were comfortable with - there should be zero effect on the total mortgage cost if you pay at the 20-year rate, for example. We also had the flexibility to drop down to the minimum payments when I was on maternity leave. We have an offset mortgage (First Direct) so have "rainy day" money sitting in our bank accounts which reduces the interest payable each month but is immediately available if we need it - in fact we took out a slightly higher mortgage than we actually needed to to have that buffer.