Reducing the term of the mortgage

scotslad1983

Hi all, again..

Two years ago I took out a 27 year mortgage for £78k - for a £150k property.

I now want to consolidate my other debts on to this as there is plenty equity.

Is it advisable to reduce the term of the mortgage ASSUMING I can afford it.. I was going to take out a 5-year fixed rate, and was thinking of lowering the number of years to 20 - I can maybe afford a 15 year, but maybe pushing it.

When my rate expires in five years, and they put me on the SVR, SAY interest rates have increased dramatically.. could I then take out a new deal with another bank, reducing the term again??

Many thanks

dimbo61

Yes you can change the length of the term each time you change deals.
You can with most lenders change the length of the term while in a deal ( if the lender is happy with that ) but there is normally a charge of £50/100.
Reducing the term means that the mortgage is paid off quicker ( saving interest ) BUT it also commits you to pay a larger mortgage each month.
Sometimes better to overpay each month ( if Allowed )