Extending mortgage period

weehev

iv started a new post for this in the hope of some replies


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

phlash

Yes it would be slightly less. Extending your mortgage period will mean you pay less off the capital amount of the mortgage each month.

Of course this means in the long run you pay more in interest. There are various mortgage calculators online that will help you to understand.

Thrugelmir

You would save more money by reducing your current mortgage by overpaying. As you would have more equity in your existing property.