Postponing mortgage repayment.

midden

I have an interest only tracker endowment mortgage which is just 3 months away from the end of its 25 year term.
As the rate I pay is now only 1.5% I'd quite like to keep it going for as long as interest rates remain low, and the endowment policy money could be reinvested in say corporate bond funds to yield better than the mortgage interest rate so I'd be in pocket. I know the risks but the mortgage amount is very modest by today's standards, and I have enough cash in ISAs to rescue me if need be.
Do you think this is a good idea and would the building society be likely to agree to an extension in any case?

Rednoseranter

Makes sense to me - you seem to be aware of the risks. You can extend the mortgage term, but they are likely to want to know that you can afford the mortgage payments going forward esp. if the extended term takes you into retirement.

opinions4u

midden wrote: »

Do you think this is a good idea

Yes, as long as you recognise the risks.

and would the building society be likely to agree to an extension in any case?

In normal times the answer would be yes. There is a risk that in an environment of a shortage of mortgage funds they may be less willing. Much better to force you to pay off you low rate tracker and lend it out to new customers who would be forced to pay more.