- Credit Card
- Real Estate
I am in the UK. In January 2007 I took out a 25 year repayment mortgage, which permits overpayments (which may be set up to either reduce the term or reduce the monthly payment) and also permits me to subsequently request to withdraw those overpayments.
Since January 2007 I have made a significant amount of overpayments and set them up to reduce the term. This has brought the end date in from Jan 2032 to Nov 2024. The monthly payment remains the same as it always has been (it is a base rate tracker with a collar and the base rate has never been above the collar in the entire time I have had the mortgage).
I now have some expenses coming up and want to withdraw the overpayments I have made (probably all of them in the next two years or so, but not all at once). I contacted my mortgage provider to ask how I would go about requesting the withdrawal and they said “just ring this number and ask, and by the way please note that this withdrawal will increase your monthly payments”. This is not what I wanted (I wanted to push the term back out again) so I asked if I could do that instead, and they said no, but I could make a separate application to extend the term on my mortgage at any time, without needing additional affordability checks as long as it does not go beyond my retirement date.
So with this all in mind, here is my plan:
Before proceeding with this plan I want to ask my mortgage provider the following questions:
My questions for you all are: