Moved the mortgate term from 23 to 10 years!

Financial_Savvy

Guys

I didn't know that I could do this, but I have moved the mortgage term from 23 years to 10 years on my mortgage. This means the payments are higher and therefore the mortgage is paid off much sooner!

I moved it to 10 years as there is no fee to close the mortgage if you have 10years or less remaining when the fixed mortgage product come to and end and goes onto the SVR.

For those that can't overpay, or hit the limit on the overpayment allowance each month please consider this as an option to become mortgage free!

Zippy2006

Cautionary Note: Care required when doing the above

By forcing your payments higher and term shorter you give your self less flexibility if your circumstances change.

It's all about getting the balance right.

halloweenqueen_2

Well done for moving it for ten years! I knocked mine down a few years and have a mortgage where I can overpay, which hits the balance for me and gives me a bit more flexibility. Congrats to you - think of all that interest you will have saved!

Floxxie

Or you could keep the term as it is and increase your monthly amount to suit you, meaning that you can increase or decrease as required. The overpayments will naturally being down the term and you are not tied in to paying a certain amount.

Floxxie

P.S. I am not on a flexible mortgage but as long as the entire mortgage is not paid off within my tied-in period, I do not get penalised.

Rebob

I have shortened the term before on my mortgages with the Abbey. If things become too tight they will let you put it back to the original term.

deb

i have done the same as op and reduced the term to 10 years - from teh 20 that were remaining - it is amazing when you get the figures really as the repayments didnt go up that much so it was well worth doing!!!

sread81114

I overpay my mortgage by £almost £60 per month which has the effect of knocking 3 years off my mortgage term. I'm 1 year into a 10 year fixed rate over 15 years with the Nationwide. Are there any admin fees etc to pay if I were to ask them to reduce mortgage term to 10 years???

mrs_deadline

If Nationwide lets you repay more than that, what you really need to do is overpay up to the max you are allowed, as that will have the same effect.

Floxxie

sread81114,

I would contact Nationwide and ask them what your monthly payment would be if you were to pay it off by the end of your tied in rate. You could then increase your monthly payment to this amount. I can't see why they would charge you an admin fee for doing so - Abbey just required a letter for me to increase my direct debit amount.

There are a few calculators on this site that would allow you to have a good idea of what it would cost you on a monthly basis if you did it this way.

Alternatively you could look at keeping your monthly overpayment at the same level but use extra funds as capital repayments (depending on what Nationwide allow you to repay each year)

Good luck!

Fiona

regularsaver1

save yourself a lot of interest doing it this way