Before asking for a mortgage extension ...

glottalstop

I wonder what the problems might be.

I have a house mortgage (c. £190k at 40% LTV) and a second mortgage on a flat (c. £130k at 50% LTV), both due up in 2015. Needless to say endowments will not cover the residual amounts.

In the current never-had-it-so-good climate making the interest-only payments is no problem, and I have chipped away at the capital as you can see.

Plan A was to sell one to pay off the other. But I would rather keep both, with the idea that the flat is effectively my pension plan.

Plan B seek an extension of around 6 years on both mortgages, which would allow the endowment policy and other savings more time to perform, and so more capital repayments could be made.

Plan C would be to seek to convert to a repayment mortgage plan, but this would also need an extended term otherwise the payments would become unaffordable.

Because I work seasonally and self-employed my income might not be considered sufficiently reliable or low-risk in today's environment. Would it be opening a can of worms if I raised this with the mortgage companies involved (NastyWet, Nationwide) ?

getmore4less

Income and are you renting the flat with sutable loan or concent.


What are the current and forcasts values for the endowments


Mortgage rates?

dimbo61

You still have 4 more years left on both mortgages so keep saving and overpay each month if you can and wait a couple of years before you speak to your lender!

glottalstop

I'm happy with wait-and-see, to be honest I have seen this coming for a few years now and have been working hard to pay off the capital. It may be that what happens to rentals, mortgage rates and property prices in the next couple of years helps the decision.

I also assume that when mortgage companies say "don't delay, come to us with your concerns or needs as early as possible" it is for their benefit rather than yours. If I was to reveal a bleak situation they would be concerned for their own risk.