Minimum term for your last mortgage renewal?

11cas · 7 March 2010 at 7:15PM

Hi,

We've decided we want to try and pay our mortgage off early - currently we have about 17 1/2 years left, but we've been overpaying and if our situation stays the same, we should be able to reduce the term by possibly 10 years.

I was just wondering whether there is a minimum term which mortgage lenders allow you to take out for your last mortgage. Could we take out a five year fixed and then finish off with a 2 year fixed?

Our current fixed rate ends in September and I've worked out that we should be able to manage the payments if we reduce the term to 7 years. Do you think mortgage lenders will try to talk us out of this, because it's obviously reducing the term by 10 years.

Any advice will be appreciated.

Thanks

Dan_1976 · 7 March 2010 at 7:31PM

I think you will find its 5 years. But I imagine being lenders, they would let you reduce it after you have set it up. I also imaging this will be lender specific.

Peelerfart · 7 March 2010 at 7:58PM

Or go for a lifetime offset mortgage ?

11cas · 8 March 2010 at 6:39PM

Thanks for the replies - it's much appreciated

Thrugelmir · 8 March 2010 at 6:49PM

Minimum mortgage advance is normally around £30k. So if you are thinking of remortgaging in the future, worth bearing in mind. The term isn't so much of an issue.