Hi
I contacted Avant earlier today about making an overpayment, they emailed me the details and I made a payment to their account.
On the email it asked me to;
Please also indicate, by return email, how you wish for your account to be treated after the lump sum is applied to your account, i.e., do you wish for the repayments or term to be adjusted?
I had assumed I would just end up clearing the mortage early, but leave the payment and term the same. If i need to choose one I'm wondering which is best;
Reduce payment - Next year I would increase my overpayment
Reduce term - Current it's 20 years but I hope to have it paid in 10
I like idea of longer term should something happen I can lower my monthly payments.
Any advice appreciated.
Term - 20 years
Rate - 2.05% fixed 7 years
Balance - 217K less 10k overpayment to be applied
Thanks