A new deal, A shorter Term? + Lenders flexible in tough times?

Douh!!!

Hi, my wife and i have a joint Buy-To-Let mortgage with Natwest. - Details below:-

Oct 2013 Bought our BTL property for £179'500
our deposit - £70'500
our mortgage - £109'000, on a 19yr Full term,
£99'500 left to pay (as at June 2015)

Monthly mrgte pymnts £815 - 2yr fixed Rate at 4.95% (repayment mrtge) Sept 2015 last paymnt
Monthly rental income=£750

Savings - we have £19k in a Sant 123 Acc (for emergency's, Holidy's, unexpected bills ....ect + incase BTL becomes vacant)

we are approaching the end of our 2yr Fixed rate in Sept 2015 and need to review our options.
i am looking to reduce our mortgage term to 7 years when i remortgage (probably with Natwest? after research) to a 5 year fixed rate.
After doing our sum's we believe we can afford the massive increase in monthly payments (est- £1'350pm @4.5%) that our new deal would bring.
(Am concidering overpayments, but worried about eating into emergency fund)

1. Will Natwest reduce the full term of the mortgage to 7yrs in the first place? (when we get the new deal)

2. if we find times get tough for us in, say 3yrs in to the deal term, is it common for mortgage lenders to increase the length of the full term of the mortgage for us, thus reducing the monthly payments, even though we would be half way through a Fixed Rate Deal?

in Oct 2013 we invested in the Buy-To-Let property and things are going well for us at the moment.
we are in our late 40's and concider our selves very lucky to have the mortgage on our first house fully paid! (through lots of sweat + tears) and i have to say:- This site helped us get through some difficult years. Thank You MSE! :T

wileycat

If you are worried about the term, wouldn't you be happier keeping a longer term, overpaying if you're comfortable, and then if you have an issue during the term you can use the reserve to help, or if its all fine, you can pay off early.
Its easier to overpay to shorten the term, than remortgage to extend the term.

This would need to fit in with the Mortgage companies rules on over/underpayments obviously

amnblog

It is not common for investors to have buy to let mortgages on a repayment basis.


Don't expect the lender to adjust the mortgage term backwards and forwards to suit how your budget feels at the time.


Be conservative in your payment estimations, and if you can afford to put some cash aside as well as pay the mortgage, do that.


You can then pay off a lump sum when the product period ends.