mortgage term expires in 1.5 years - what to do?

teddysmum

The position of someone in their 70s, who doesn't care whether they pay off the mortgage, as they won't be around and a 'youngster' in their 30s who has many yeast ahead are not the same. Also, in these uncertain times, interest could go up.


A couple of years ago, someone who had ample savings and owned their home outright wanted to buy a house for their daughter to buy via paying rent, but this was not enough , as they were refused on the grounds of age (early 50s). Savings and rent income , plus owning a house of higher value were obviously not enough of a guarantee and I would imagine rent from a lodger, rather than a tenant, would be less reliable,too.

Person_one

You want to retire at 33? Forever? Why not find a job you enjoy, as you have the financial means that you don't have to work you can spend some time finding out what that is, or training for it. If you opt out of work completely now then it'll be incredibly difficult to get back in if you ever need to in the future. At your age, there's a lot of years ahead of you (hopefully) in which literally anything can happen.

economic

i am looking into something so i may have a job that i could enjoy very soon. but im thinking ahead if in 1.5 yrs i decide not to have a job what happens if i want another product?

re retention - how does this work? i thought mortgagr retension is when lender asks for some money back for works needed when you first buy the property?

i dont want to pay cpital off as i get better return elsewhere and want some cash for opportuntiies. i guess if i start earning in a new role i like i should aim to pay off the mortgage quicker.

KRB2725

When you come to the end of your fixed term (usually 3 months prior), you are able to approach your lender to enter into a new fixed term/rate product. They are 'retaining' your custom, hence the term.

However, I thought I read that there was new legislation that meant even in this scenario, applications now had to go through affordability calculations. I could very well be wrong on this, but there are several brokers that post on the mortgages section that will know.

Jhoney_2

economic wrote: »

i am looking into something so i may have a job that i could enjoy very soon. but im thinking ahead if in 1.5 yrs i decide not to have a job what happens if i want another product?

re retention - how does this work? i thought mortgagr retension is when lender asks for some money back for works needed when you first buy the property?

i dont want to pay cpital off as i get better return elsewhere and want some cash for opportuntiies. i guess if i start earning in a new role i like i should aim to pay off the mortgage quicker.

See #10

mwpt

economic wrote: »

i am looking into something so i may have a job that i could enjoy very soon. but im thinking ahead if in 1.5 yrs i decide not to have a job what happens if i want another product?

re retention - how does this work? i thought mortgagr retension is when lender asks for some money back for works needed when you first buy the property?

i dont want to pay cpital off as i get better return elsewhere and want some cash for opportuntiies. i guess if i start earning in a new role i like i should aim to pay off the mortgage quicker.

I've just done a "product switch" deal with my existing lender online. You go online, enter some details identifying you, choose your new product (my interest rate dropped from 2.4% to 1.75%) and submit the application. They send you forms which you sign and return and it is done. No need to update on details of job or such. My circumstances have changed since I obtained my mortgage and like you I was slightly worried but it wasn't an issue.