30 Year Term Mortgages

pennypincher1010

Hi There

I am in my late 30's and re-mortgaged 2 years ago. I extended the term of my mortgage to 30 years in order to make monthly payments lower.

My brother who is younger than me said that he tried to get a 30 year term from his lender and they refused - this made me think about my setup!?

I am due to re-mortgage again in Spring of next year. My LTV is pretty healthy 65%-70%. Is it likely that my lender will ask me to reduce the term of my mortgage (to maybe 25 years) when I re-mortgage?

Thanks in advance for any advice!

:beer:

feisty1

Could easily be the lender yr brother went to doesnt lend further than 25 yrs (unusual nowadays) or is yr brother 35 or over?

Not advice, information only

ixwood

You wouldn't mortgage for 30 years again though, as you've paid some off. If you keep resetting to 30 years, you'll be paying it forever.

pennypincher1010

My brother is touching 35 as far as I recall :-)

To be honest I'm surprised that I ever got a 30 year term. I presume that with the 'credit crunch' in full swing, 30 yr mortgages aren't so easy to come by (for someone of my age.) :mad:
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feisty1

I suspect the reason yr brother was refused was 30yrs would have taken him into retirement (65) and that particular lender wouldn't allow it

AS for yr own mortgage if u stay with yr exisiting lender it will become 28yrs

However if yr looking to move.......... be careful u dont meet same problem as yr brother if affordability is important to u as a shorter term than u currently have will be a higher payment plus a possible increase in rate compared to what yr paying now.............

ixwood

Why do you want one? I don't understand.

pennypincher1010

Cheers Feisty.

I believe that there is a possibility I will be asked to reduce my mortgage term. I am becoming very confused about the consequences of the 'credit crunch.'

I'm reading that the UK faces 'deflation' - to be honest I don't really know what that involves (can only presume it's the opposite of inflation.). I've read that interest rates could become much lower within a year, and we might also have drops in general cost of living.

Who knows? At times like these it pays to visit Money Saving Expert every night!

:money:
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feisty1

ixwood vbmenu_register("postmenu_15251171", true);

Why do you want one? I don't understand.quote

read the post carefully and then u might understand
he is not asking for a 30yr mortgage!!

pennypincher1010

Ixwood, I am in year 28 of paying mortgage - I was wondering if I would be forced to take a 25 year term when I re-mortgage early next year. Obviously, this will push up payments.

Cheers
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ixwood

Oh, Ok. Sorry.

It's worth bearing in mind that It'll push up payments, but cost less overall.

Good luck!

feisty1

pennypincher1010

Do not worry, pls take note of my earlier remarks

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.