Increase Mortgage Term - At discretion of Bank or not?

phil_51

Is it at the discretion of the Bank or Building Society if they let you increase the term of your Mortgage or is it compulsory that they must allow you to increase the term.


Had read somewhere that the FSA said they must allow you to increase the term.

Will they allow it on the current product or would you have to move to SVR.

E.g We are looking at a 5 Year fixed and 18 years left to pay, if we got made redundant and cannot find a job in a year (got MPPI for a year) could we increase term to lower payments?

phil_51

help anyone?

getmore4less

I would have thought it discrecionary.

They should be able to put limits like mormal retirement age.

I don't actualy know try here

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

see if this says anything and report back

~Beanie~

It's at the lenders discretion.

Graham04

I recently extended my term from 20 to 30 years and the lender (Lloyds), had no problem as i'm only 24, but they did mention "that's fine, means you shall not be going beyond your retirement age"

koexelek

~Beanie~ wrote: »

It's at the lenders discretion.

They are usually OK about doing it, as long as the end date does not go past their upper age limit, and that you can demonstrate that you can still pay it if it goes past state retirement age