Extending my mortgage term beyond 65

williamD1964

Im 46. I have a mortgage for £186,000 which at the moment is interest only to exdue to paying off credit card debts accured. The mortgage runs until December 2029, with the fixed term running until May 2013. I get a good job, reasonably secure, with a good pension (been paying in for 20 years so far) and a promise of a lump sum.
What are the possibilities of remortgaging, returning to repayment and extending the payment period beyond my retirement age by 3 - 5 years.

inca_2

It depends on the lender that you are with. Some will view that you are too far away from retirement to be reasonably expected to know what your income will be and look at how affordable it would be on a reduced income. Some may ask for more specific information on future income, best thing to do is to get in touch with them and see what they say. Is the mortgage affordable on repayment if you took it to retirement age rather than extending beyond it? I would imagine that you would rather have it paid off if you can before you retire. Looking at you sig it seems you are taking responsibility for clearing debts so if you do need to look at a longer term then you could always look to overpay once debts are cleared with the money you were paying towards them each month. This will help reduce your term so that even if it looks at the moment like you will need to go beyond retirement you may be able to change that later on.

williamD1964

Thanks. The other thing is that I moved the mortgage from repayment to interest only. Once the fixed rate deal expires will I be expected to return to repayment or should I be able to remain on interest only.

uzubairu

How would you pay off the capital if you stayed on interest only?

williamD1964

I would be looking to keep it at interest only until the debts are cleared then increase my payments to compensate for the short fall.Am targeting 2014 as Dec 2014 as my debt free time. That would leave me with 15 years to pay off the mortgage of 186,000.

williamD1964

I should also add that my pension is 90% of final salary. I have been paying in for 25 years. also have the option of a lump sum plus a smaller pension on retirement.

getmore4less

Your pension years have gone from 20-25 years paid up in 5 posts.

If you put all your debts including the mortgage into a snowball calculator how much is left at the end of the current term? (see below)

I would probably leave it at retirement age and interest only for now overpay once the debts are clear and review when you get a bit closer say in another 10 years.


Looking at the posts/sig

£28,500 debts paid off in dec 2014 say 4 years so about £600pm(probably more with interest)

That leaves 15year on the mortgage.
5% £186k mortgage i/o is £775 add £600pm after 15 y you owe around £25k

Find another £100pm and it will be cleared.

williamD1964

Your right, checked my pension payments, and found out I had been contributing since joining the company in 1984. Maximum contributes are till 40 years. The main debts I want to clear are the credit cards. I am paying a minimum of £375 on the cards each month, and £156 on the loan. Cant find the snowball calculator so any links would be a real help. My main aim, is is to reduce the cards as much as possible before the fixed rate ends, then re-assess from there. Thanks for all advice.