10 Year Mortgages

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Chris2014

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Is it more difficult to get a 10 year mortgage?

If i enter my details into the EBS online calculator it tells me what i can get over 10 years but is it harder to get a 10 year as the bank will be making less interest?
 
The banks main criteria is ability to pay. If you're in your 50s then they will generally only give out 10 year mortgage till you're 65. If you are young and just want a 10 year mortgage just apply for a 20 year one and overpay so that it's paid off in 10 years. Only drawback is that you cannot fix and overpay a mortgage so will have to be a variable rate unless you feel like fixing for a few years and paying a lump sum at the end.
 
Would you pay the 20 year interest or would it be reduced by paying off quicker?

I assumed that if you sign up for the 20 and paid it in 10 you would pay the equivalent 20 year interest amount.
 
No you wouldn't pay the equivalent of 20 yrs interest, you only pay interest for the time you have the loan, it's calculated daily on the outstanding balance so if you accelerate the payments on a 20yr loan by paying the relevant payments for a 10yr one then it will finish in 10yrs as though it was that term day one.

The only difference is you will need to take out a 20yr mortgage protection policy initially anyway, you may be able to cancel it and swap for a 10yr one afterwards but bank will have to have one in place for the term applied for unless you are in the exempted categories.
 
Monbretia said:
No you wouldn't pay the equivalent of 20 yrs interest, you only pay interest for the time you have the loan, it's calculated daily on the outstanding balance so if you accelerate the payments on a 20yr loan by paying the relevant payments for a 10yr one then it will finish in 10yrs as though it was that term day one.

The only difference is you will need to take out a 20yr mortgage protection policy initially anyway, you may be able to cancel it and swap for a 10yr one afterwards but bank will have to have one in place for the term applied for unless you are in the exempted categories.
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Thanks for that info. I never knew that. That changes my plans a lot now.

So how could someone have protection on a mortgage thats paid off? Maybe you have to buy off the rest of the contract or something no? Interesting scenario
 
Mortgage life insurance as oppose to mortgage protection - two different things. Life insurance is compulsory. As soon as the mortgage is paid your payments stop.
 
Mortgage protection as opposed to repayment protection? You could of course keep on the mortgage protection policy after the 10 yrs was up if you wanted to, it just means if you died then the money would go to your estate rather than the bank to clear a mortgage.
 
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