mortgage question

JonSimmonds

Hi,

Currently 25, currently renting and going by todays house prices never going to be a homeowner on my current sallary (the joys of working in retail...) hopefully a complete carerraa change will solve that

What im asking is, if I get a 30 year mortgage before I turn 30, how easy will it be to reduce it to a 25 year one later on in life, to save on the intrest? (no debt apart from the good old student loan, and gratuate (intrest free) overdraft) I have some money left to me from my grandmothers will (which is currently in ISA's and national savings) purly for use as a deposit, but with the prices as they are today i'll be very hard pressed to get a mortage for a hosue or flat in a semi decent area

herbiesjp

The simple answer to your question on reducing the term is, it is pretty simple.

If you were to have a mortgage, you would go to your current lender and ask them firstly for what the new figures would be on say a 25 year term, and then ask them to implement it for you if it was affordable.

If you were re-mortgaging to a new lender, you simply ask the lender/adviser to give you a quote for the term you are looking for, and again base the decision on the figures that come up.

MarkyMarkD

I suspect that most lenders would charge for reducing the term. But I shouldn't worry about that because you aren't likely to have the same mortgage by that point anyway - when you switch products, or remortgage, you can alter the term then.