# Term reduction



## Familyman77 (19 Apr 2020)

Hi there. I'm in the cohort and have 186k left to pay with 17 years left. I pay €1157 inc insurance per month. Am I right in saying the redress will reduce the balance by the 12% ( say 30k as I'd have owed approx 260k at the time ) , that my term will remain  the same and that my monthly repayments will reduce. I'm on a standard variable but would rather reduce the term by paying the same monthly amount


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## Brendan Burgess (19 Apr 2020)

Hi man

At any time, you can ask your bank to reduce the term of your mortgage. 

In fact, you don't even need to ask them. You could leave the term the same and just overpay your mortgage.

Then if you got into difficulty in the future, stop the overpayments.

If you reduce the term and get into difficulty, then you would have to restructure your mortgage and the bank might not agree. 

Brendan


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## Daithib (19 Apr 2020)

Brendan Burgess said:


> Hi man
> 
> At any time, you can ask your bank to reduce the term of your mortgage.
> 
> ...


Hi Brendan
Can you clarify the 4% cash amount. Is it 4% of what was owed on the loan when the fixed rate stopped or the amount after you deduct the 12% please?
So basically if the balance on the loan when the fixed period stopped was €230k - 12%= x less 4%...


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## Familyman77 (19 Apr 2020)

Thanks Brendan.


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## aibredress (20 Apr 2020)

Hi @Familyman77 ,

In regards to your questions and just to clarify, your contract with the bank states the length of the mortgage at the time you took it out. It has been confirmed to me in writing that you can reduce the term of the mortgage and if required re-extend to the date that your original mortgage. you can not extend your mortgage longer than what you first agreed, but you can reduce and extend as required during this term.

It is worth making the phone call and getting this confirmed, but this has been done in the past.

I hope that helps and I am open to clarification on the same.


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