Mortgage advice - HELP!!!

I've been considering paying off my mortgage early. I recently got a good deal when looking to re-mortgage in preparation for when my fixed period ends. I have had the standard valuation completed and offer accepted by a new mortgage provider. I have also signed the mortgage deed with the new provider but not dated it until the exchange takes place on 31st March. I chose to complete my mortgage in approximately 8 years instead of 17years. I really didn't get much advice before signing the agreement with the lender (silly me). I can afford the current monthly payment but given the economic climate feel it might be better play safe by increasing my term and making overpayments instead which would make me complete the payments within the same period I would have paid off the mortgage and with additional saving on interest. The new mortgage will not take effect until 1st April. I'll like to know if I can change my mortgage payment terms with the new lender without any implications? Will I still be able to receive the same interest rate since it was the same when I applied regardless of the mortgage repayment term. From my calculations using the mortgage calculator, it would be cheaper increasing the term and making overpayments compared with reducing the repayment term and with higher monthly costs. Hope this makes sense? Any suggestions will be welcomed. Thanks.


  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
    I think you have to contact your lender to confirm most of these issues.

    Assuming your regular monthly payment (longer term) plus OP is the same as the increased regular payment amount due for a shorter term, then it should not make any difference.

    Finally, I would agree that it is generally preferrable to keep the term the same and make OP's rather than reduce the term and be tied into higher monthly payments. The only excecption being where you have to pay ERC's on OP's.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Thanks for your response, Jonbvn. I'll contact my lender.
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