Mortgage term -round years or years and months

daheff

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I'm looking to move house currently. My mortgage provider is willing to move the mortgage we currently have with them (tracker) to the new house.

the problem i have is that they want to only issue the mortgage for a round number of years (slightly less than the remaining term on my current mortgage). I want to have the mortgage match the Life Assurance policy we have so that we don't need to take out another one or reduce the time of the mortgage term (by 1 year).

Are banks only allowed to issue mortgages for a round number of years or can they issue for years & months?

Overall I get the feeling the mortgage adviser is trying to screw us a little (As we have a great tracker rate I think they are trying to claw back some money)
 
Have they told you that the life assurance will need to be changed? I don't imagine a bank will be too bothered about the mortgage protection running out a few months before the end date of the mortgage, at that stage there would be very little left to pay so not a massive risk of any sort.

I imagine their mortgage products are configured to round number of years so basically they are opening up a new one attached to the new address rather than changing the address on the existing one which wouldn't work. That's probably why they must stick with a set number of years.
 
We did a tracker transfer with PTSB earlier this year and were held up at the last moment due to life assurance being a couple of months short of the new mortgage term! We ended up taking out a new policy to cover the new mortgage term.
 
they told me that the new mortgage and the life assurance must match to the month.

Worst case is i'll take out a very small policy (5-10k, or whatever the minimum is) to cover the last few months of the mortgage. I dont want but if needs be i will & cancel it at a later stage.

its just a case of 'computer says no' working mentality. I'm 99% sure when we went in for the original meeting to get mortgage approval that they could put in non round years into their calculator.
 
Have they told you that the life assurance will need to be changed? I don't imagine a bank will be too bothered about the mortgage protection running out a few months before the end date of the mortgage, at that stage there would be very little left to pay so not a massive risk of any sort.
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I agree...and theres already a lot of equity going to be in place from the start, so they are just taking the proverbial i think
 
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