Is it possible to reduce term of a fixed rate mortgage?

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lionstour

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I have a mortgage 23 years fixed at 5.65%

I want to reduce the term to 15 years and pay extra.

Will the banks allow this?

Thanks
 
i assume that the 5.65% is fixed for e.g. 25 year mortgage, 5 years fixed and 2 years in have 3 left on fixed and total of 23, and you want to reduce it to 15 years. Most likely you will only be able to do that after the end of the fixed period. Otherwise you would require to break the fixed rate and pay a break cost. Given that you are reducing the term and making extra payments it is possible that the bank may do a deal with you if e.g. the remaining term after fixed period of e.g. 20 years is ECB tracking then the bank may do a deal with you if it is to go to variable, or indeed still ECB as the bank will have less duration to fund. It's always worth a try, but I wouldn't hold my breath.
 
To do what you propose means you'd have to break the fixed rate and that incurs a penalty.

As we live in strange times don't let that put you off. Ask the bank. They are interested in people paying down debt and may allow you to come off the fixed rate without penalty. Phone the mortgage office and ask to speak to someone about it.

Last year Ulster bank had a brochure which said they would allow customers to overpay without penalty.

If you are not allowed to do it without penalty then save the extra into a high interest deposit account and once the fixed rate term is finished, tranfer the lump sum off the mortgage and then pay extra each month.
 
Thanks for the excellent replies Bronte and Marksa I will ring the bank and discuss as suggested.
 
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