Apologies if this has been asked before
Im about to remortgage, and thanks to a pay rise I can pay quite a bit more off each month, so Ive been considering reducing the term of my mortgage.
Then I started wondering if the sensible thing is to keep the term as long as possible (say 35 years) and just make over payments each month to make the total monthly amount paid the same as if the term were, say, 15 years?
That way if I lose my job or some emergency befalls me I can stop overpaying and I only have to pay the monthly amount on a 35 year mortgage. Is this a good idea, or am I overlooking something?
Im about to remortgage, and thanks to a pay rise I can pay quite a bit more off each month, so Ive been considering reducing the term of my mortgage.
Then I started wondering if the sensible thing is to keep the term as long as possible (say 35 years) and just make over payments each month to make the total monthly amount paid the same as if the term were, say, 15 years?
That way if I lose my job or some emergency befalls me I can stop overpaying and I only have to pay the monthly amount on a 35 year mortgage. Is this a good idea, or am I overlooking something?