Reducing mortgage term

waterbaby

Hi,

I am not allowed to overpay my mortgage by as much as I would like to, and I understood from reading posts on here that it is possible to reduce the term of a mortgage.

So I rang First Active and enquired, and was told that I can't reduce the term, I would have to close the existing mortgage and take out a new one (at current interest rates and an arrangement fee).

have I misunderstood the posts I read on here then? Can I not reduce the term of the existing mortgage? The bloke on the phone was speaking in a very scripted way, I'm not sure he actually understood my question.

waterbaby

sorry for double post, my computer appeared to crash

kingkano

Thats down to the features available from your bank/on your particular deal. It sounds like you have a very inflexible arrangement. They would obviously be very hesitant to decrease the term because it means less interest (profit!) for them!!!

I take it you have some kind of fixed deal? Could you not save the overpayments into an ISA/high % savings account, and when the fix period runs out pay this amount onto it at remortgage time. And when you remortgage look for something more flexible