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    • sammiejay
    • By sammiejay 14th Sep 17, 6:53 PM
    • 31Posts
    • 34Thanks
    sammiejay
    Term reduction with outstanding debt
    • #1
    • 14th Sep 17, 6:53 PM
    Term reduction with outstanding debt 14th Sep 17 at 6:53 PM
    Hi everyone,

    My fixed rate is coming to an end and I can change from next month without an early repayment charge.
    I have decided to stay with the same lender (nationwide) and was hoping to reduce the term from 30years to 20. This would still give me a lower monthly payment than I've been paying for 5years.
    If I do this online will they still do an affordability check? I've heard that they won't if the term remains the same, but to reduce the term they would.
    The problem is I have A LOT of debt, so even though the payments would be affordable would I be denied the reduction in term due to the debt?
    Or would it be safer to just keep the 30year term (heartbreaking though that is) and overpay?

    Any advice appreciated
Page 1
    • dimbo61
    • By dimbo61 14th Sep 17, 7:13 PM
    • 9,550 Posts
    • 5,164 Thanks
    dimbo61
    • #2
    • 14th Sep 17, 7:13 PM
    • #2
    • 14th Sep 17, 7:13 PM
    Keep the same term and start to clear your debts !
    Start with the most expensive first.
    Maybe time for a 3/5 year fix for long term security for your family IF you have no plans on moving in next 3/5 years ?
    Can you afford your current home if you have built up debts ?
    Sell up and buy something cheaper !
    Overpay the Mortgage once you have cleared other expensive debt
    • TrickyDicky101
    • By TrickyDicky101 14th Sep 17, 7:17 PM
    • 2,801 Posts
    • 1,814 Thanks
    TrickyDicky101
    • #3
    • 14th Sep 17, 7:17 PM
    • #3
    • 14th Sep 17, 7:17 PM
    Assuming the difference between 30yr term vs 20yr term is below your maximum overpayment limit (without penalty) - which is presumably very likely - then taking the 30yr term and overpaying achieves the same aim surely?
    • sammiejay
    • By sammiejay 14th Sep 17, 7:21 PM
    • 31 Posts
    • 34 Thanks
    sammiejay
    • #4
    • 14th Sep 17, 7:21 PM
    • #4
    • 14th Sep 17, 7:21 PM
    There's no way I could get something cheaper. Mortgage payment once the interest rate changes will be under £250 per month. I can afford my home just fine at that, the debt has been accrued for various reasons including redundancy, a lower paid job and the boiler needing to be replaced amongst other things.
    Im working hard to pay down the debt, just would have been a bit of a morale boost if I could have reduced the term. All the debt is interest free so the mortgage is the only thing I pay interest on.
    • sammiejay
    • By sammiejay 14th Sep 17, 7:25 PM
    • 31 Posts
    • 34 Thanks
    sammiejay
    • #5
    • 14th Sep 17, 7:25 PM
    • #5
    • 14th Sep 17, 7:25 PM
    Thanks, I think this is what I'll do, like I said, just would have felt like I'd achieved something if I could have knocked 10 years off. 30years it is!
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