You can apply to amend your mortgage term at any time, for each change the lender will carry out their own affordability checks as normal.
Being eligible for a mortgage term change
You cannot apply to change your mortgage term if:
♦ The property is currently being let
♦ Any part of your mortgage is interest-only
♦ You’re more than one month in arrears with your mortgage payments.
♦ You or anyone else on the mortgage has been declared bankrupt and has not been discharged
♦ There’s a guarantor on the mortgage
♦ The Consumer Credit Act regulated your mortgage at the time it was taken out.
♦ You want a mortgage term that is longer than 40 years.
♦ The term is extended past the 75th birthday of the oldest borrower.
♦ You have a leasehold property in England or Wales and don’t have at least:
♦ You have 55 years remaining on your lease from the date of extending your term
♦ You have 30 years remaining on the lease at the end of the extended term.
♦ You have a leasehold property in Scotland or Northern Ireland. You don’t have at least 50 years remaining on the lease at the end of the extended term
What to expect when extending your mortgage term
Extending your mortgage term will make your monthly repayments lower. But it will ultimately increase the total amount of interest paid by the time the mortgage is paid off.
Reducing your mortgage term
You can apply to your lender to reduce the term. However, this may cause future hardship should your circumstances change, a more flexible option is to simply overpay if funds allow. However, if possible, overpayments are an option. It would be unwise to agree to a higher monthly sum just for your financial circumstances to change. With overpayments, you can pay when you are able without the stress.
Overpaying
Overpaying your mortgage, even by a small amount can make a significant difference as interest is calculated on the outstanding balance. Most lenders will allow you to do this. However, some may charge you a fee depending on how much extra you want to pay.
Can I move my mortgage if I move house?
No, when you move house, you will need a new mortgage. This is because the loan is attached to the property itself.
How we can help
Lestons can either assist with the negotiation of an existing situation, or provide you with access to a host of independent mortgage brokers and professional financial advisors who can give you great advice, we do not charge for this service itself but do charge for our time in creating the proposal and briefing documents. To create a case so that we can liaise with you over your needs just click the link at the top of this page, our staff are ready and eager to assist you in any way possible.
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