extending mortgage term 22 July 2008 at 9:02PM in Mortgage-free wannabe 2 replies 1K views

poundnotes_2

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:

Kaz2904

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?

poundnotes_2

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.