For the Finance / Mortgage bods of the forum

owenthomas · June 8, 2010

My current mortgage "deal" ends in July.. i was reading an article the other day about paying more off your mortgage a month (ie currently pay 500 but every now and then you pay an extra 100 off) and this brings down the amount of time and interest you pay off your mortgage. It got me thinking...............

The figures that follow aren't exactly correct but are roughly there or thereabouts:

When our last deal was up three years ago we did a new (three year) deal and the repayment was something like £470 a month and the term was over 19yrs 9months. I then said to the girl "how much if we bring it down to 19 years, thereby knocking 9 months off our mortgage term" and we were quoted £500. We took that.

After reading that article the other day i have a query:

A) Is it better to renegotiate my deal and knock a few months/a year off and pay a little extra per month?

Or B) if my mortgage payment is £500 per month should i add a few quid to it each month (assuming no penalties for overpayments). If so, how much to make a difference and save us money and get the house paid off sooner?

I'd appreciate knowing which option and why (and if you've got the time explaining any pro's and con's to either option)

Nice one!

matty · June 8, 2010