Mortgage and Redundacy

holly876dog

I am about to remortgage. The product I'm after is very good for me with low int (boe-0.16%tracker/24mths) and low set up costs, one drawback is no allowed overpayments. I would like to overpay so one option would be to reduce mortgage term from say 20 to 15years BUT job is insecure so if worst happens could I contact my new lender to arrange to lengthen term, therefore reducing my payments? Don't want to go for ASU cover as I'm not sure if worth it overall. As it will be in tie-in period period (2yrs) would I be liable for ERC if mortgage term is changed. Don't really want to contact new lender to discuss as it may set alarm bells ringing. Does anyone have experience of losing job and asking lender to lengthen terms w/o charges be incurred?

Any help/comments would be much appreciated.

Robert_Sterling_3

You are remortgaging at what you consider is a good rate.
It is only for two years.
You want to overpay.
You do not need to.
Put the money which you would use to overpay into a Mini Cash ISA which pays a higher rate tax free than your lender charges you for your discount mortgage.
Eureka.