Term reduction with outstanding debt

sammiejay

Hi everyone,

My fixed rate is coming to an end and I can change from next month without an early repayment charge.
I have decided to stay with the same lender (nationwide) and was hoping to reduce the term from 30years to 20. This would still give me a lower monthly payment than I've been paying for 5years.
If I do this online will they still do an affordability check? I've heard that they won't if the term remains the same, but to reduce the term they would.
The problem is I have A LOT of debt, so even though the payments would be affordable would I be denied the reduction in term due to the debt?
Or would it be safer to just keep the 30year term (heartbreaking though that is) and overpay?

Any advice appreciated

dimbo61

Keep the same term and start to clear your debts !
Start with the most expensive first.
Maybe time for a 3/5 year fix for long term security for your family IF you have no plans on moving in next 3/5 years ?
Can you afford your current home if you have built up debts ?
Sell up and buy something cheaper !
Overpay the Mortgage once you have cleared other expensive debt

TrickyDicky101

Assuming the difference between 30yr term vs 20yr term is below your maximum overpayment limit (without penalty) - which is presumably very likely - then taking the 30yr term and overpaying achieves the same aim surely?

sammiejay

There's no way I could get something cheaper. Mortgage payment once the interest rate changes will be under £250 per month. I can afford my home just fine at that, the debt has been accrued for various reasons including redundancy, a lower paid job and the boiler needing to be replaced amongst other things.
Im working hard to pay down the debt, just would have been a bit of a morale boost if I could have reduced the term. All the debt is interest free so the mortgage is the only thing I pay interest on.

sammiejay

Thanks, I think this is what I'll do, like I said, just would have felt like I'd achieved something if I could have knocked 10 years off. 30years it is!