Reducing my mortgage term

Allen_2

My Mortgage is with NRAM (formally Northern Rock).

I recently overpaid my mortgage, and asked if I could reduce the term of mortgage to 1 year and pay the higher monthly rate. They told me that it would be 10 mths or 1 year & 10 mths due to their policy. Which one, depends on the decision from up above.

My Question is this, if there are no written terms or conditions given for this ruling, can they legally refuse the 10 mth term?

dimbo61

How would we know!
The minmum term for a new mortgage is normally 5 years
Read the T&C,s that came with your mortgage

Allen_2

Dimbo, that is my point, there is nothing stated in my terms and conditions regarding that ruling. And it is not a remortgage, but a change of term I want! i.e reduced from 3 years to 10 mths.

Typhoon2000

Just overpay and the mortgage will be paid off sooner, no need to have your term reduced and monthly payment adjusted automatically.

Allen_2

Only problem with that, I will incur a penalty cost, if it is paid before the end of agreed term

abouttimetoo

Hi Allen

I'm not sure whether you want them to reduce the remaining term to 10 months or one year, your first post seems to suggest both?

I guess what the others are trying to say is does it really matter if they will or wont do what you want as by just making the higher payments anyway you will be in total control of the end date whether they have agreed to it or not. Remember that if they do change it to what you want you may be completely tied to that and if something unexpected comes up this could put you into financial difficulty whereas if you just make overpayments then you retain control.

In terms of paying a early repayment fee, the answer is to simply leave a nominal balance of one pound for example and leave it outstanding until whatever time you are released from the early repayment fee, plenty of people on here have done it.

Is there a really key reason why you wish them to agree to reducing the term?

Allen_2

Thanks for the feedback. I wanted them to agree to 10 months so that I can be mortgage free sooner and avoid any more interest than necessary. I was just a little surprised, and admittedly bugged, that they did just agree the 10 months but said it might be 1 year and 10 months giving no reason for this and nothing in my terms and conditions about it.

If they do insist (for whatever reason) that it must be 1 year 10 months than I will go with the suggestions on the forum.

Thanks again, Allen