extending mortgage term

I am about to pay a substantial lump sum off my mortgage as I have retired from work and I will be receiving a lump sum and a work's pension. My state pension does not kick in for another 5 years. I want to be have a reasonable standard of living until then and to do this I would be better to extend the term of my mortgage for an extra 5 or so years. Has anyone done this?:cool:

Replies

  • Kaz2904Kaz2904 Forumite
    5.8K Posts
    Mortgage-free Glee!
    How would you pay your mortgage for the extra 5 years?
    Mortgage companies don't always like this being done as you don't have an income per se. Can you not invest your lump sum in high interest accounts for the time being and use the capital and interest to make your payments?
    Debt: 16/04/2007:TOTAL DEBT [strike]£92727.75[/strike] £49395.47:eek: :eek: :eek: £43332.28 repaid 100.77% of £43000 target.
    MFiT T2: Debt [STRIKE]£52856.59[/STRIKE] £6316.14 £46540.45 repaid 101.17% of £46000 target.
    2013 Target: completely clear my [STRIKE]£6316.14[/STRIKE] £0 mortgage debt. £6316.14 100% repaid.
  • I would intend paying my reduced mortgage repayments out of my pension that I will receive from my job. I will be left with enough to live on each month - I hope! I will have to provide proof to my mortgage company that I am receiving this pension. I will have some cash left over (10,000) which I was hoping to put into a high interest earning account - it is not a fortune but I need to have this in cases of emergency so I don't want to tie it up for any more than approximately 3 years. I get my state pension in about 5 years time.
This discussion has been closed.
Latest MSE News and Guides

Check your Clubcard vouchers

Use our trick to extend them

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals