Hi All,
I'm considering swapping my mortgage to a different lender to get a better rate but have a few concerns.
I'm currently just over 12 years into a 25 year repayment mortgage and want to get a new 13 year mortgage to cover the rest of the payments.
Obviously, when the mortgage was new most of the money I paid covered interest with only a very small amount coming off the capital in the first few years with the capital to interest ratio (I'm sure there must be a proper technical term for this) increasing as time goes on.
If I swap to a new lender does this reset and mean I will go back to mostly paying interest on the the new 13 year mortgage or does it continue as if it was at the same stage of a 25 year mortgage? I'd prefer to reduce my total debt at a faster rate than just saving a few quid and almost totally paying interest on the new mortgage loan.
Any help and advice would be appreciated!
Mr O
I'm considering swapping my mortgage to a different lender to get a better rate but have a few concerns.
I'm currently just over 12 years into a 25 year repayment mortgage and want to get a new 13 year mortgage to cover the rest of the payments.
Obviously, when the mortgage was new most of the money I paid covered interest with only a very small amount coming off the capital in the first few years with the capital to interest ratio (I'm sure there must be a proper technical term for this) increasing as time goes on.
If I swap to a new lender does this reset and mean I will go back to mostly paying interest on the the new 13 year mortgage or does it continue as if it was at the same stage of a 25 year mortgage? I'd prefer to reduce my total debt at a faster rate than just saving a few quid and almost totally paying interest on the new mortgage loan.
Any help and advice would be appreciated!
Mr O