I’m a young first time buyer at the beginning of my career. I have been offered a 100% mortgage with a Lender and this Lender has offered me the best rates so far but the 40 year term is at least 5 years longer than I would like it to be. The Lender will not budge on the issue of the mortgage term. I believe that I can easily afford a shorter-term mortgage. In fact the longer term will only result in a saving of €60 a month over a 35 year term (the maximum offered by the other banks).
The Lender has told my broker that it will “revisit the issue” of changing the term in “a year or two” once I have a positive mortgage repayment history behind me but it will not put such a commitment in writing.
Accordingly, I would appreciate it if somebody could advise as to how likely it is that the Lender will keep to this verbal commitment to change the term of the mortgage. Are Lenders very reluctant to change the term of a mortgage? I am somewhat anxious as it will be an Affordable Homes mortgage and will not be able change Lender in the event that the Lender refuses to revisit the matter. This Lender has offered me the best rates though.
The Lender has told my broker that it will “revisit the issue” of changing the term in “a year or two” once I have a positive mortgage repayment history behind me but it will not put such a commitment in writing.
Accordingly, I would appreciate it if somebody could advise as to how likely it is that the Lender will keep to this verbal commitment to change the term of the mortgage. Are Lenders very reluctant to change the term of a mortgage? I am somewhat anxious as it will be an Affordable Homes mortgage and will not be able change Lender in the event that the Lender refuses to revisit the matter. This Lender has offered me the best rates though.