Changing term on a 5 year fixed rate mortgage

Toon49

We are 1 year into a 5 year fixed rate mortgage and planning on moving house due to moving jobs.
We had decreased our rate to 12 years on our current mortgage as could afford to pay it off quicker however are moving to a much more expensive area and planning to move into a bigger home. We therefore want to borrow more money which we have been advised will be a new mortgage product which is fine.
Would we be able to increase the term to 25 years on our existing 5 year fixed term mortgage therefore decreasing the monthly cost so overall we are paying for 2 mortgage products over 25 years rather than one over 12 and one over 25? This would save us £400 a month to make it affordable!
Thanks

getmore4less

A port is a new mortgage anyway just on the old terms.

should be possible but if you say which lender the brokers will probably know the policy of that lender.

The alternative is keep the 12 years and do the new bit over a longer than 25y period to bring the total cost down that way(If you are not too old).

In your case the change in circumstance required new lending application but not all are and that is why it is recommended to overpay rather than shorten term when you can afford more.

ACG

Im not sure it will be possible.
The top up could be done over a longer term, but the the existing one I think would need to remain the same - not something I have come across in a real life situation however so I could be wrong. I suppose potentially you could do the top up over say 30-35 years to balance out the shorter term part and then sort it all out in a couple of years? (Assuming you are not bobbing on too much :-P)

Toon49

Yes that is another option i had not thought about! I'm 27 so definitely could get over a longer period if needed! I'm with Santander currently.

kingstreet

You will apply for a new mortgage based on the term you require and the product will be ported to that with any increased borrowing offered on one of the lender's new products.

So yes, it will all be on the same term.

amnblog

As Kingstreet says.

You port the product not the mortgage.

It’s a new mortgage and the term and size of that mortgage can be agreed with the lender to suit your circumstances.

Both your current lending and the extra you need can be on the same new term.

ACG

Ive learnt something new too

AnotherJoe

Toon49 wrote: »

We are 1 year into a 5 year fixed rate mortgage and planning on moving house due to moving jobs.
We had decreased our rate to 12 years on our current mortgage as could afford to pay it off quicker

Next time, dont do that eg if your financial circumstances change for the better again, dont do it)
Much more flexible to overpay rather than shorten the term (because you haven't committed to doing it for 12 years), and also paying extra to pension is most likely a much better financial proposition than rushing to pay off a cheap mortgage rate. (if you can halve your mortgage duration you are likely high rate taxpayer = big tax refund on pension payments)