What term for Remortgage if you plan to pay it off ASAP?

mrsm

We're looking to remortgage. We currently have 15.5 years of a 25 year left.
We're looking at the FD 5 or 10 year fixed (If things stayed as they are we could clear the debt in 9.5 years. I realise we would need to keep a balance until the end of 10 yrs to avoid penalty)

With only my Husband working at the moment the amount we need to borrow is close to FD maximum multiple. Would be better to apply for a mortgage for longer than the 15 years we have left, and then overpay as much as possible or just ask for the 15 years (and obviously still try to clear asap.) I really really want a FD mortgage and am trying to maximise our chances of being accepted

silvercar

FD mortgages are based on interest only with the option to make capital repayments. So in theory it shouldn't matter what length of term. As its an offset mortgage, you could apply for a long term and get to a net zero balance but keep the mortgage open without incuring penalties.

mrsm

thanks. Do you think we'd be more likely to be approved asking for a longer or shorter term?

InMyDreams

mrsm wrote: »

thanks. Do you think we'd be more likely to be approved asking for a longer or shorter term?

Best thing to do is ring them up and ask them. They can go through all the figures, take all your details and tell you provisionally if it's going to be OK, subject to credit check, valuation, etc. They can then reserve the mortgage for you for free for 5 working days (or six months if and when you pay the reservation fee) I asked exactly the same question as we are some way over the multiple figure I've seen bandied round this site, so I was rather worried, but they said it wouldn't be a problem.

But whatever you do, ring them quick. The 5yr fix has already gone (as of this evening) and who knows how long the 10 year fix will be available. Or course they may replace the 5yr with an even lower one, but I doubt it. What's the harm in reserving the 10 for the next 5 days if you are still making up your mind. It doesn't cost any money or a credit search, just your time on the phone.

mrsm

InMyDreams wrote: »

Best thing to do is ring them up and ask them. They can go through all the figures, take all your details and tell you provisionally if it's going to be OK, subject to credit check, valuation, etc. They can then reserve the mortgage for you for free for 5 working days (or six months if and when you pay the reservation fee) I asked exactly the same question as we are some way over the multiple figure I've seen bandied round this site, so I was rather worried, but they said it wouldn't be a problem.

But whatever you do, ring them quick. The 5yr fix has already gone (as of this evening) and who knows how long the 10 year fix will be available. Or course they may replace the 5yr with an even lower one, but I doubt it. What's the harm in reserving the 10 for the next 5 days if you are still making up your mind. It doesn't cost any money or a credit search, just your time on the phone.

this morning I am:D. I've done it. I've been hassling for a call back all week and today I got a lovely guy who once he heard I was interested in the 10 yr treated me like royalty. a mortgage consultant called me back at 9, we've crunched all the numbers and have been accepted in principle.

If nothing changes we'll be mortgage free in 9 yrs 11 months but now I've got the bug and aim to pay off asap (will be tough as we already live a very frugal life but I'm determined to do something. I have my mortgage pig ready:D)