Hi ladies & gents,
Apologies in advance if this is in the wrong area.
My husband and I took out a mortgage 2 years ago with Halifax over a 35 year term (first time buyers) at a crazy rate of nearly 6% where our payments were around £420 p/m.
We have just rolled onto the variable at 3.99% and so our payments have dropped down to £307 p/m.
We are looking to over pay on our mortgage to bring it back up to the £420 a month (Halifax allows this)
My question is:
Is over paying to bring up to the old figure (which reduces the term significantly if we always did this) the same as remortgaging but over a shorter term and paying around the £420 as a miniumum or payment?
Or is one way more cost effective with interest etc than the other?
Hope I've made sense and really appreciate and help that can be given. :D
x
Apologies in advance if this is in the wrong area.
My husband and I took out a mortgage 2 years ago with Halifax over a 35 year term (first time buyers) at a crazy rate of nearly 6% where our payments were around £420 p/m.
We have just rolled onto the variable at 3.99% and so our payments have dropped down to £307 p/m.
We are looking to over pay on our mortgage to bring it back up to the £420 a month (Halifax allows this)
My question is:
Is over paying to bring up to the old figure (which reduces the term significantly if we always did this) the same as remortgaging but over a shorter term and paying around the £420 as a miniumum or payment?
Or is one way more cost effective with interest etc than the other?
Hope I've made sense and really appreciate and help that can be given. :D
x