reduce the term of a hsbc mortgage?????

ripon12

hi just trying to find out if its possable to lower the term of my recently taken out hsbc 5yr fixed mortgage??
i am desperatly wanting to overpay but i can only pay 20% of my monthly payment per month so was wondering if theyll let me reduce the term hence moving my monthly payment up to a level wich is better for me and still allowing me to overpay
any help would be great
cheers

originalmiscellany

Shortening the length of the term should have the desired effect... You pay more per month but for less.

I think you can do it, but the best thing would be to ring them tomorrow to check, and also check your paperwork to see what the small print says.

Bare in mind if you up the amount you pay, make sure you can keep it up long term; and not just for a few months.

Alternatively, if you can get a savings rate at a higher rate than you are paying on your mortgage, save, and make a big overpayment in 5 years time.

ripon12

Bare in mind if you up the amount you pay, make sure you can keep it up long term; and not just for a few months.


im really commited to paying it off and have been overpaying with my old lender (halifax) for the past 4 years so really wanted to keep it up long term

Alternatively, if you can get a savings rate at a higher rate than you are paying on your mortgage, save, and make a big overpayment in 5 years time.[/QUOTE]



im fixed at 3.99 for 5 years and cannot seem to find a savings account to beat this after tax

iheartbristol

Unless things have changed drastically in the last 18 months, reducing the term will mean you're effectively applying for a new mortgage and HSBC will make you go through this whole process. If you go to a branch they'll unleash the adviser on you who will try and give you advice and sell you every insurance under the sun. If you're going to do it might be worth ringing up their mortgage service centre instead like mentioned above.

I have been the above adviser.

iheartbristol

Oh, and applying for a 'new mortgage' means you're repaying the old one. As you're on a fixed rate I suspect there will be an early repayment charge. This could actually all get very complicated; unless their systems have changed drastically.

Was this an advised mortgage? If so was the term advised based on your circumstances or did they just say - oh, First Time buyer, you'll be wanting a 30 year mortgage (for example). If you can prove that the adviser didn't justify the term it might be easier to try get it changed without cost.