Extend Mortgage?

LondonGurl

Hi guys,
I really hope you can help.
I have a mortgage with HSBC 10yr fixed @ 5.49% until 2017 (I know what you are thinking but the rate was good when I took it out).
It was orignially a 25 year standard mortgage but for the last few years I have had my sister living with me and decided to use the extra cash to over pay my mortgage. I had a minimum I could over pay each month so I decided it would be easier to reduce the mortgage term which I did. I reduced it from 25 years to 15 years. Fastforward three years later and my sister is moving out. I popped into HSBC to revert it back to the orignial 25 years and am told I need to speak to mortgage services on the phone. I have just come off the phone with them and they tell me that I am UNABLE to revert it back to the 25 years unless I submit a brand new mortgage applicaiton. Not only that but I will have to pay ECR of approx £11k??!!
Can someone please help me with this? When I initally reduced the mortgage, it was done in a few minutes and I was never told that this was going to be an irriverisble decision. Please please please can someone tell me what my other options are.
Let me know if you need more details.

Sunshine12

OP, Im not sure why HSBC would be different but the last 2 mortgage lenders Ive been with have allowed me to extend the term despite having reduced it previously. I actually just had this discussion with Halifax the other day and they told me no matter what product Im on I could extend the term no problem. I would perhaps phone them again and ask exactly why you cant change it back.

If its definately not an option then have you considered going onto interest only but then overpaying? You can probably only overpay by around 10% per annum (again every lender would be different but I think with most of them its 10%) but would at least mean that you arent going to end up financially strapped each month (although will obviously take you a heck of alot longer to pay off). Again, Ive switched to interest only with no penalties and no issues providing I can confirm to them that I will be saving enough to discharge the mortgage when the term ends.....

LondonGurl

Thanks for the advice Sunshine but they said switcing to interest only is not an option either. I mean what would happen if I lost my job. The situaion is making me feel ill if I am locked into this until 2017.

LondonGurl

bumping.. pls does anyone have any advice?

LondonGurl

OK thanks. I am also a Premier Customer with them so I hope that stands for something. I logged an a formal complaint last night and I should hear back from them within the next 5 days. I also have a meeting with one of their Premier mortgage advisors next Thursday.

weehev

hi there,

i didnt know you could extend your mortgage period without 'remortgaging'.

im currently in the crappy position of 'saving for a deposit' and trying to put away £300 a month, my current mortgage is with Dunfermline Building Society, SVR 5.19% which costs me £570 a month. I have just over 22 years left on it.

if i extended this to a 30 or 35 yr period my payments i assume would reduce thus i could put more away each month for the deposit to move...however would this affect the amount of equity i have? so far i have about £5000 equity, expected to be about £7000 in 12 months, would it be less if i extended my mortgage period?

any advice would be greatly appreciated

hev xx

LondonGurl

bump**bump**

Thrugelmir

Arrange a meeting with HSBC and explain the circumstances. Dealing with call centre operatives isn't often very satisfying.

You requested the contractual change to your mortgage so you have no complaint against the bank. As this is something you should have condiered and asked at the time.

smartpicture

It sounds like you could afford the current payments so long as you had your sister living with you. So have you considered taking in a lodger on a similar basis?