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Changing mortgage terms

  • 05-12-2010 2:20pm
    #1
    Deise Hurler
    Closed Accounts Posts: 219 ✭✭


    Hi there,
    I took out a tracker mortgage 5 years ago to be repaid over 35 years. I am in a situation whereby I am able to pay alot more back to the bank than I am at the moment and thinking about changing the lenght of the mortgage down to 25 years, in order to save on paying interest to the bank. Just a quick inquiry to as if I choose this option will there:
    • be any charges from the bank for changing my mortgage terms?
    • any possibility that I might lose the tracker mortgage and have to choose a variable or fixed rate instead?


Comments

  • #2
    chris85
    Registered Users, Registered Users 2 Posts: 4,502 ✭✭✭chris85


    Deise Hurler wrote: »
    Hi there,
    I took out a tracker mortgage 5 years ago to be repaid over 35 years. I am in a situation whereby I am able to pay alot more back to the bank than I am at the moment and thinking about changing the lenght of the mortgage down to 25 years, in order to save on paying interest to the bank. Just a quick inquiry to as if I choose this option will there:
    • be any charges from the bank for changing my mortgage terms?
    • any possibility that I might lose the tracker mortgage and have to choose a variable or fixed rate instead?

    your tracker is variable and as such you can overpay if you wish, they cant penalise you for overpaying on a variable under the consumer credit act but they can do on a fixed rate.

    You could ask them to change the term but they may try get you off your trackers as its not a product they offer anymore or you could just pay extra to your mortgage when you wish.


  • #3
    Thoie
    Registered Users, Registered Users 2 Posts: 6,344 ✭✭✭Thoie


    Check with your bank, but it should be fine. I just wrote them a letter a while back saying until further notice I'll be paying €x per month, and could they let me know the new term in writing, and it was all fine.
    If my circumstances change I'll switch back to paying the "right" amount, but at my current rate of payments my term has dropped about 10 years.

    There were no charges/penalties/fees when I did it.

    Instead of having a particular term in mind, how about having a particular monthly payment in mind and then seeing what the terms ends up as?


  • #4
    esharknz
    Closed Accounts Posts: 267 ✭✭esharknz


    We did something similar recently (actually, we reduced the term 3 times) and had no issue whatsoever with our tracker mortgage.


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