Mortgage Review - But change in circumstance

ladybird963

Hello,

I hope someone can help me. Me and my husband have had our mortgage on our current property for just over 2 years, since we had it we have had a child and i am now part time. and our earnings are less.
We have no issues with our mortgage provider, how ever we paid a small amount of money off and requested that it reduces the term of the mortgage and not the monthly repayments. They said that in order to get this confirmed we would need to have the mortgage reviewed.
But my fear is due to our severe change in circumstances they they can say we do not fit the criteria? Could this happen? Has anyone ever had this happen before? i am so worried we would get re-possessed even though we can afford the monthly repayments its just the income is a lot less etc

Please help me

ACG

They wont repossess. Worse case they will reduce the payments and keep the term the same - but you may still be able to make overpayments to reduce the term indirectly.

SG27

Just let your ops reduce to the term. But ask them to keep your payments fixed at the current level. It will still have the same effect of reducing the term. Just not contractually.

ladybird963

Thank you for your advise both of you, i am a worrier and as i dont have confirmation in writing it feels like they could end of pulling the wool over our eyes (putting it politely). Why is it that in order to confirm our term reduction they have to do a review? I am giving them money not asking for more so can not make sense of it. What are your thoughts on what i should do? Should i just carry on making over payments as and when we can but not have the term reduction confirmed?

Contemptuous

ladybird963 wrote: »

Thank you for your advise both of you, i am a worrier and as i dont have confirmation in writing it feels like they could end of pulling the wool over our eyes (putting it politely). Why is it that in order to confirm our term reduction they have to do a review? I am giving them money not asking for more so can not make sense of it. What are your thoughts on what i should do? Should i just carry on making over payments as and when we can but not have the term reduction confirmed?

The lender isn't doing anything untoward, it's trying to act responsibly - the purpose of the review is likely to check the rate you're on is the most beneficial, and that increasing your payments to reduce the term is affordable and sustainable for you.
As already suggested, you have the option to continue making overpayments as and when you like, but your monthly payment will remain at a level that you clearly find affordable.

SG27

You've got nothing to worry about. Just keep making the overpayments. It will still save you money on interest and you will still repay the mortgage quicker.