Sale Agreed - Too late to change mortgage lender?

johnpackt

I have gone recently sale agreed on the property. I have everything sorted out. Survey - done. Bank's Valuation done. Approx Moving date is 1st Dec.

My mortgage provider is KBC Ireland. They issued me the loan offer today and I was surprised that the term was 30 years whereas I initially (3-4 months back) told them I want 35 years mortgage. I called them today and explained the situation to them but was of no use. They said they have changed the terms (2-3 months) and now the maximum years mortgage they provide is of 30 years for everyone.

Now I am confused should I start the application with another provider which might take over a month or go ahead with KBC.

Darc19

Frankly 35 years is way too long for a mortgage and does no one any favours.

30 years is very long too.

I suspect that the monthly repayment difference is about €40 per €100,000 of mortgage, so I'd just proceed.

You obviously can afford the repayment as they wouldn't give you the mortgage otherwise

johnpackt

I did some calculations. The addition of 5 years gives some additional flexibility and I can always pay some additional money if I want to reduce the term later on.

Darc19

It gives you 5 more years of mortgage payments and the monthly difference is not huge.

JimmyVik

I wouod be of the opinion that you get a mortgage for as long a term as you can and then overpay from the start. That way should you hit hard times or there is a recession you have breathing space because you have over paid until that point.

C14N

https://www.boards.ie/discussion/comment/117977989#Comment_117977989

I'd be the same. You can always shorten the term later if you decide you want to, it's a lot harder to do it the other way around, and generally whatever money you save would go further in other safe investments over the same period.

Red Silurian

https://www.boards.ie/discussion/2058211711/sale-agreed-too-late-to-change-mortgage-lender

Considering KBC are leaving the country soon enough you would think they'd be a little less strict about their mortgage policies

I know a young couple who were refused a mortgage from KBC due to a minor blip on their Credit Report, why do they care so much?

L1011

https://www.boards.ie/discussion/comment/117991695#Comment_117991695

They need the loan book to be in the best condition possible for sale.

SteM

Take the 30 year mortgage. People who say they will will overpay further down the line rarely do in my experience. Life gets in the way, there's always something else to spend the money on. They'll take out a car loan instead or put the money into saving for a holiday. That's all fine but it doesn't reduce the 35 year loan hanging around your neck.

Ardeehey

I would think that until you sign the papers you are free to look elsewhere if you like. It's all about timing after that..and some risk. You are open to how long it will take to apply and get approval from another lender, the time it coudl possibly add on to you closing the purchase (my mortgage papers were signed for months before we actually closed on the house) and risk in that a new lender application may not go the way you want it to go.

So until you sign you can do what you want......but I agree with the comments above regarding the length, it's better to work from a liong term agreement back to a shorter-term....plus you can always look to move mortgage providers whenever you want..assuming it's not a longer term fixed rate agreement.

Red Silurian

https://www.boards.ie/discussion/comment/117991719#Comment_117991719

Surely a 35 year mortgage is worth more than a 30 year mortgage though no?

SteM

https://www.boards.ie/discussion/comment/117991807#Comment_117991807

But if they don't offer a 35 year mortgage anymore but give one to the OP that would raise a red flag on any checks done by potential buyers. If they give a mortgage to a young couple with a blip on their credit report that would raise a red flag too. They just want a clean book that they can sell on so they can exit the market at this point.

L1011

https://www.boards.ie/discussion/comment/117991807#Comment_117991807

Not if it runs to a much older age, for instance.

Red Silurian

https://www.boards.ie/discussion/comment/117991864#Comment_117991864

Good point

johnpackt

Update- I mailed them about the 30 Year mortgage issue. Detailing that the during the initial call I had selected 35 years of tenure. Also I had a mail conversation with mortgage team related to this. To my surprise they called yesterday and said that they will be converting it to 35 years as committed earlier (This was after one of the customer executive rejected the request stating they don't give 35 years loan anymore). So that ended well and would be going ahead with 35 years payment.