Fix term coming to an end, can I change mortgage length

Gabe77

New Member
Messages
3
Hi, my boi 3% 3 year fixed rate finishes in January. It's a 175000, 25 year mortgage so will have 22 years left. House was valued at 220000 3 years ago and probably valued a little more now.

I've a current account with KBC so I'm thinking if switching to them. Avant looks attractive too.
Can I change the length to 20 years or less if I stick or switch?
Many thanks
 

Merowig

Frequent Poster
Messages
202
I would suggest to keep the length and just overpay (you can have a mix between fix and variable). Just in case...
 

Gabe77

New Member
Messages
3
Hi Merowig,

Thanks for the response. However I don't quiet follow probably due to to how I phrased my question.

So in January when my 3-year fixed term comes to an end with BOI, I get another mortgage(with BOI or any other bank) and continue with the 25-year term.

If I can pay a little more per month would it not be worth trying to reduce the overall all term of the mortgage? I expect I would pay less overall in interest

Thanks
 

misemoi

Frequent Poster
Messages
183
You can shorten the length of your mortgage with the new bank when you switch, subject to the usual qualifying criteria ie affordability & LTI/LTV. But once you shorten it, it might be tricky to increase it should you have too if something happens like job loss, unexpected bills like medical, nursing home, education. Safest method is to keep your original term, and structure your mortgage in the way that allows you to repay early, in line with the 20 years. This could be part variable, fully variable, or fixed with a bank like BOI, UB or KBC that allow varying degrees of overpayment on a fixed rate without penalty.
 

Brendan Burgess

Founder
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41,544

NoRegretsCoyote

Frequent Poster
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1,602
If I can pay a little more per month would it not be worth trying to reduce the overall all term of the mortgage? I expect I would pay less overall in interest
Overpaying has the net effect of reducing the term of your mortgage. I have 23 years remaining on my BoI mortage and monthly overpayment by 10% will see me finish paying it off in 19 years.

It's much better to overpay and then retain the flexibility to go back to regular payments if your financial circumstances get worse. I wouldn't recommend a shorter-term mortgage as you lose that flexibility.
 

Gabe77

New Member
Messages
3
Now I understand what you meaning by overpaying. Apologies for my inexperience.
Thanks for all the very helpful responses. Overpaying seems like the way to go.

KBC and Avant both look pretty attractive, any other suggestions on a bank?

Btw I switched my current account from aib to kbc a few weeks ago. Straight forward process and recommend it.
 
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