A lot depends on whether you formally reduced the term of your mortgage to 19 years, i.e. signed a form saying "New Expiry Date May 2030" or whatever, or if you simply increased your monthly repayments, which had the effect of reducing your term. Although the two have an identical effect, the former is a change to the original contract, so the lender can refuse a change back, while the latter can be stopped at any time.
Your idea about using the overpayments to fund another house purchase only works assuming that you're keeping the original house as the security.
If we withdraw the money we are entitled to, lets say 100,000. Use that to buy a new house. Borrow whatever extra we need on a new mortgage. Sell the old house. If we still owe money on that, then at least it'll still be on a tracker rate and therefore better than borrowing the entirety on a new rate?
Does that make sense?? I just dont have anyone to run these ideas by!!!
It is possible to do it. I am after extending the term on an investment mortgage from 12 years to 17 years.The mortgage was an interest only tracker which is just after changing to capital and interest payments. Surprisingly, I didnt even look for this option from the bank but they offered it to me.Even though the mortgage is now over 17 years, it will remain on the tracker rate for that term.
Rasher.
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