Mortgage application question!

[sallysue2]

I think my mortgage advisor may have put application in for over 35 years, although I said to him I would rather it over 30, he told me to go away and play around with mortgage calculator. He seemed quite sure we should go for 35 but I didn't want that. With everything else going on I just realised we never actually confirmed the term before he put the application in, so I think he may or done it for 35 years but can't get in touch until Monday and it's really bothering me, I know we can overpay but I would rather it over 30 still. Can this be changed at this stage? Valuation done today but don't know outcome yet. Please help! Thanks

You say you want it over 30, and he's put 35....don't they usually go up in fives? I'm sure it can be changed at any time until you've actually signed but not sure what you mean by 'over 30'.

Unless you are taking a 35 year deal you can change the term at the end of whatever deal you take, we have a five year fixed rate on a twenty five year mortgage. When the five years end we will probably reduce the remaining term to 15 years.

@Pipandmum I mean I want it to be paid off in 30 years rather than in 35 years. God I'm panicking a bit now, and thinking he should of clarified it before he put it in knowing we had discussed it

I know we can change it when fixed term ends, but it's really not necessary to take it over 35 years when we can afford 30 and to overpay. I just haven't a clue if it can be altered at this stage

Yes it can before offer as long as it fits affordability.

don't worry about it for a moment. it's not worth the hassle of changing it at this stage because if your
change the term now they will have to redo all the affordability checks which you don't want.

if the term has been written as 35 years, then so long as you have the standard ability to overpay by 10% a year you can easily make repayments as if the term was 30 years until the end of the initial fixed deal. then when you rearrange for your next tranche of fixed price years you can easily ask for the term to be reduced then. you will be no worse off than if the term was 30 years from the start.

we started with a term of 30 years when I really wanted 25 years, but we only ever took a 2 year fix and so each 2 years i shaved a year or two off the term.

It may be that the application has to be started again as it will change the affordability calculation and that could delay things - this is dependent on the mortgage supplier though some are more efficient than others and have different processes.
But try not to worry. You can always calculate the difference in monthly payment between the 2 terms and most products will let you overpay. At the end of the product you can reduce the term as part of your next deal / remortgage.

Just over pay. Mine is over 35 because it was a better deal to allow for life and what it throws at you but I have already shaved a good few years off that.

It doesn't mean you're mortgage will actually be over 35 years, just this current deal is set as that. Once this deal finishes you pick a new deal and new term.

You won’t stay with this lender for the whole term of the mortgage surely? I’m presuming you have a two year or five year deal? After that your term can be changed.

As you say, you can always over pay if you want to. You can have a look at the repayments and see how much you would have to repay and put the money by.

It may be quite a good thing in actual fact to have a contingency stash just in case something crops up! If you are maxed out on monthly repayments it’s hard to sort out a bust washing machine or pay an insurance excess for a broken window or whatever if you have no spare money.

If this is your first mortgage perhaps that what was in the guys head. Although he should ultimately have done what you asked.

Thanks everyone. Fixed term is 2 years but in that time we would hope to of started a family so affordability will be less which I'm worried about. Feeling really narked that he never bothered to check with us.