Switching Mortgage Online - Term Query

sunshineheart

When coming to the end of a fixed deal and opt to switch to a retention product online does that mean your mortgage term stays the same?

For example I have a 30 year deal fixed for 5 years. When renewing online does my term become 25 years or can I opt for a 30 year product again without requiring any checks?

sammyjammy

The remaining term would be the same, if you started with thirty years and its now 25 then the new mortgage would be at the 25 year term, if you wanted to change the term you would have to go through an unwritten mortgage application.

Hoenir

Contractual mortgage end date remains the same. 

sunshineheart

Got it thanks.  Is the repayment calculated on the original mortgage balance rather than the balance at time of the switch?

PixelPound

sunshineheart said:

Got it thanks.  Is the repayment calculated on the original mortgage balance rather than the balance at time of the switch?

At the time, hence why if you have been making extra payments then you will be offered a lower amount that maintains the original term. You should be able to reduce the term (well I was with Nationwide), but not extend it (why would you extend it unless you are finding the payment amounts too much as it increases the amount of interest paid)

sunshineheart

Makes sense thanks a lot!