Reason 3

Moving house doesn’t matter. A common misconception about repayment mortgages is that you always go back to square one and start a new 25 year term when you move house or remortgage. In reality it’s normally up to you what you do in these circumstances. You can start a new 25 year term if you want to keep your initial repayments lower. But most people ask their lender to recalculate the loan so it still ends on the original repayment date. It’s also possible to stick to the old schedule on your existing borrowings, but to start a new 25 year term with any extra you need to borrow for your new home. Lenders shouldn’t charge you if you want to alter your repayment structure at any point. Just give them a call if you want to know how a change of term might affect your payments.