Switching Variable Mortgage Change of Term

abbey

Registered User
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55
Hi,
I am currently attempting to go through the process of switching mortgage. The amount involved isn't huge (€72,000). I had got a letter of offer for a variable mortgage over 10 years. Shortly after I had filled in the application I got married and my wife moved in with me. When filling out the Letter of Offer my wife filled out a declaration so that the bank would have charge over the property if I stopped paying the mortgage (Family Home Delcaration). The mortgage is just in my name. She is not paying towards the mortgage.

When I sent bank the loan offer they decided that it had to be re-assessed because of my wife. Now they have offered me the same amount over 20 years.

I'm assuming I can overpay and pay if off in 10 years as I originally wished to (its a variable mortgage)? There are no consequences of having a longer term?

Thanks,
D
 
Having a longer term is advantageous to you as it means that you can overpay as much as you want and then reduce your payments unilaterally if your circumstances change. There can be no penalty provided you are on a variable rate.
 
No consequences other than you will have to have life cover initially in place for the longer term.
 
That's reassuring, I'll just get onto the Life assurance company to sort out any changes there. Thanks for the advice.
 
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