Over payments and length of mortgage?

deker

Making over payments obviously means a mortgage would be paid off sooner than the agreed period but does the agreed length of the mortgage still stand?

Edi81

Yes it does. 

deker

Edi81 said:

Yes it does. 

Thanks but are you speaking from experience? Is it a legal condition that the full term still applies?

getmore4less

deker said:

Edi81 said:

Yes it does. 

Thanks but are you speaking from experience? Is it a legal condition that the full term still applies?

In what context?

if you have been overpaying you can choose.

Keep the full term and adjust payments accordingly

Finish early  ( you can always finish early as no one would be able to remortgage or move) 

deker

Have been over paying to the extent of knocking (correction) 2 years off the full term but now wondering if we can spread the remainder over the remaining 2.5 years. So far the discussions with them seem to avoid referencing the original (and only AFAIK) agreed 25 years term and instead almost insisting it would be a new mortgage application. I disagree of course.

getmore4less

Which lender?

ask for the payment to be recalculated or wait for a trigger that will do it anyway.

Sistergold

You can also leave the mortgage term the same let the monthly repayment go down AND continue overpaying till balance is zero at which point the mortgage is paid up whether there is still 20yrs remaining it will no longer be relevant. That’s what I am doing overpaying but mortgage term is staying the same. I am still a LONG way from paying off. 

Thrugelmir

deker said:

Have been over paying to the extent of knocking (correction) 2 years off the full term but now wondering if we can spread the remainder over the remaining 2.5 years. So far the discussions with them seem to avoid referencing the original (and only AFAIK) agreed 25 years term and instead almost insisting it would be a new mortgage application. I disagree of course.

If you wish to amend the contractual term of the mortgage then the lender is obliged under regulatory guidance to perform a full affordability assessment. You can disagree as much as you like, but those are the rules. 

getmore4less

deker said:

Have been over paying to the extent of knocking (correction) 2 years off the full term but now wondering if we can spread the remainder over the remaining 2.5 years. So far the discussions with them seem to avoid referencing the original (and only AFAIK) agreed 25 years term and instead almost insisting it would be a new mortgage application. I disagree of course.

Still not clear what you are asking

if you take out a mortgage for say 25 years then that's the full term.

If you pay it for 5years you then have 20years left.

You can't go back to 25 years.(that would require rechecks)

If you overpay so that after 5 years it would be paid off in  18 years 

Then you can go back to a payment that would have it paid off in 20years.


Many lenders don't actually reduce the term when they give the option of "reduce payment" or "reduce term".

What they really mean is "reduce payment" or "keep payment the same".