Please help. FTB Advice needed.

Telebug1

Good Morning.
We are in a bit of a predicament and I thought I'd ask for some advice before moving forward.

We have recently had an offer accepted on a house and a Mortgage Broker has been looking into possible mortgages. My partner earns £16800 and has been informed that he could get the £67500 mortgage that we need but on a 38 year term. This would take him to retirement age and me to 72 when the term expires. I can not be considered for the mortgage at the minute as, although I earn more, I am only on a zero hours contract and the money isn't guaranteed, I also have a bankruptcy on my credit file that is due to expire completely in September.

I would like to know, if we took out the 38 year term and in 2 years time, when the fixed offer was up and we renewed in joint names, what would be the odds of the term being reduced to 20/25 years? I have read about over payment but I think that my partner is frightened that he will be stuck with a mortgage until he retires.


Thanks in advance

maninthestreet

Shortening the mortgage term by at least 10 years is going to push the monthly payment quite significantly.

amnblog

Two points here.


1. Your zero hours contract is not necessarily a barrier if you have been on it some time (ideally two years).


2. Even if you take a 38 year term now you should have the option to overpay the mortgage within limits to keep it on track to finish earlier.

Telebug1

Thanks for your replies. :beer:

I have looked at the over payment calculator and by paying just £50 per month more, we could potentially knock 12 years off the term and save £36K. I know this isn't exactly how it works but it definitely food for thought!