Questions regarding mortgage period?

IBJackJones

Hello, was wondering if someone could answer a few questions I have regarding length of a mortgage.

I am due to start a 25 year mortgage that is fixed for 2 years, after the two years are up can I switch the period to say 10/15/20 years if my salary allowed it?

Reason for the question is my partner and I will be saving large amount of money over that period and will reduce the loan amount from £166,500 to around (we hope) £120,000.

Do you know if the banks have issues with mortgages with a low period on them? are they hard to find?. I am a FTB so I am a little clueless when it comes down to this kind of stuff

Thrugelmir

Best to leave the mortgage to run its full term. Instead make overpayments to the maximum you are allowed. That way you enjoy the best of both worlds. If times get financially challenging you have the flexibility of reducing your monthly outgoing.

_Andy_

Should be fine although the mortgage may be re-underwritten.

Mrs_Z

I second Thrugelmir's advice.

hamster2013

agree with the above
after the 2 year, you will be able to make overpayments without any penalty
so make most use of that and see your mortgage disappear

OffGridLiving

Thrugelmir wrote: »

Best to leave the mortgage to run its full term. Instead make overpayments to the maximum you are allowed. That way you enjoy the best of both worlds. If times get financially challenging you have the flexibility of reducing your monthly outgoing.

Totally agree with this advice. I have often seen people on financial forums mentioning that each time they remortgage, they reduce their mortgage term by a couple of years to 'force themselves' to pay off their mortgages earlier. This is fine if their finances keep going up in line with inflation and they don't have an unexpected demand on their income, such as babies, illness, job loss, job change (to lower pay), etc. However if things do change for the worse financially, then they could struggle to maintain those higher mortgage repayments, possibly ending up in arrears.

As Thrugelmir states, it's much better to retain the mortgage term and make overpayments during the good years so that you have flexibility during the bad years. If no bad years come, then your mortgage will still be paid off just as quickly.