Changing term of existing mortgage when current deal ends

thriftychap_2

Was wondering if anybody had any experiences could shed some light on my question please.

3 year tracker is up 1st May - 22 years left of mortgage (£56000 @ £296pm)

I am most likely going onto a lifetime tracker and would like to reduce my term to 3 years @ £1488pm, this is fee free.

My question is - will they perform an affordability check or allow me to change the term without checks?

I purchased my flat 3 years ago, since then my earnings have increased by £10,000 and i am recenlt married so our joint income means we are financially comfortbale as a result of a small mortgage and being financially prudent. Hence we can now afford this kind of payment.

Thank you for any help.

kingstreet

Leave the term as it is and make voluntary overpayments to achieve the same end result. Tying yourself to a massive increased payment is difficult to undo if your circumstances change and you can't afford to pay the higher contractual payment.

In a month where you can afford less, pay less. In a month you can afford to pay more, pay more. That way you can allow for life's little expenses that you can't always plan for...

thriftychap_2

im limited to 10% overpayments per year.

michelle2008

Will the limit still be in place when the tracker ends? My deal also ends in may - from then on the limit is removed

kingstreet

thriftychap wrote: »

I am most likely going onto a lifetime tracker

Can you clarify what you mean by this?

Is this the follow-on rate, are you remortgaging onto this deal with a new lender or are you taking a new product from your existing lender?

sims01

thriftychap wrote: »

im limited to 10% overpayments per year.

Is that 10% of your mortgage payment or 10% of the entire mortgage per year?

There are some trackers that have the latter in their terms, which would allow you to have the flexibility to pretty much halve the term of the mortgage voluntarily without tying yourself to higher contractual payments.

yvonne_alan_joshua

i change my term whenever my fix ends, i ring up my lender and decide which deal im going on and try and reduce my term sometimes by one a year there are no checks or new searches just a thirty five pound admin fee ( im with natwest)

JournalGirl

Why not look at the first direct offset mortgages. We have one of these with a 13 year term, which we will pay off in 2 years, but as said earlier, if we have a tight month we can pull some money back and avoid trouble.

thriftychap_2

Current mortgage and lifetime tracker both allow 10% of total mortgage overpayment per year.

If I dont take the lifetime tracker at 3.19% i will revert onto the SVR of 4.24% - and yes this allows unlimited overpayments.

Looking at the figures:
Current deal = £241
3.19 lifetime tracker = £246
SVR = £276

Looking at these and with consideration of some of your posts it might be better to bite the bullet of the SVR which will allow unlimited overpayments but with the flexibility of varying payments depending upon circumstances.