Trying to extend the term of our mortgage

HappyMJ

Simon_gloster wrote: »

Am I missing something here!!!!?

They want to re-write the mortgahe JUST to change the term?

A term adjustment is a back office administritive task.

If HSBC did that for all requests like that they would be snowed under on internal full application adjustments.
If I really am wrong and they do this......they need to have a word with themselves.

Great rates apparently but an@l procedures.

A term adjustment is a back office admin tsk on a normal standard variable rate mortgage. But these funds have been purchased at a low rate and need to be repaid sooner rather than later to the bond investors. They can't just change the term quite so easily on this one.

OP if you are having trouble meeting the repayments then consider borrowing some money elsewhere maybe as a low interest credit card and stoozing the debts around for a while. Don't go mad on it though...A clear and balanced SOA would be better.

JC_Derby

Personally id stick with your current mortgage. You may be suffering a bit of short term pain, but iunless you have a change of circumstance - ie baby, severe illness etc, id say stick with the short term pain your going through because ultimately youllbe better off in the future.
if your company gives you a pay rise annually you would be slightly better offanyway and your mortgage would be easier to pay every year.

sammyjammy

I did this with Halifax a few weeks back, it took a five minute phonecall with someone in the call centre, obviously they had to check my details to see if this was ok.

I would imagine has already been suggested its less to do with their policy and more to do with your current rate and wanting to get you off it.

What are your plans if rates rise? Even if they had let you extend the term a couple of percentage points sounds as if it would become a real problem.

40andproud

Thanks for all these replies, sorry I have been away for a few days.

@Simon gloster - I couldn't agree more about their an@l procedures but I am starting to realise from the other replies here that they are just trying to get us off this rate

@JC_Derby - this is our situation really. We can manage but would just like a bit more available cash rather than paying it all into the mortgage.

@sammyjammy - It would be a problem if interest rates change and we might well be forced to move house at that point.

Thank you all again for your advice.

marathonic

40andproud wrote: »

@sammyjammy - It would be a problem if interest rates change and we might well be forced to move house at that point.

Rates WILL rise over the next few years. My advice to you would be to cut expenses now.

If you wait until rates rise, you'll have to cut expenses more dramatically. Whilst it may seem over-the-top, cutting a Sky subscription, lowering the price plans on mobiles, switching Utility suppliers, etc. now would be a very, very smart move.

Your mortgage is with HSBC who offer a 6% regular savings product for up to £250 per month. If you can cut expenses by £250 per month and put it into this account, you'd have a cash buffer of £3097.89 at the end of the year.

I know that, for example, cutting Sky when you can still afford it (just about) may seem too much of a sacrafice. However, if you just read about some of the sacrafices those with children need to make in other threads, you'll see what can happen when you leave it until the sacrafices HAVE to be made..... better to cancel Sky and a mobile phone now than to be looking for ways to reduce your food budget in a years time.

marathonic

Basically, make sure that you scrutinise EVERY bill you have to see if it can be reduced.

Samples of what you can do are:

• Switch credit card debt, if any, to 0% deals;
• Switch Gas, Electricity, Broadband, etc. if possible;
• Switch your bank account to Halifax for their £100 bonus + £5 per month (set up a standing order to your HSBC account for your mortgage and, if you open it, the Regular Savings account)

There's a lot more than you think that can be done to improve your finances.. you just need to think outside the box...

40andproud

I hear you, Marathonic, I really do:D

Just so you know, we don't have Sky! Nor do we have any credit card debt, we pay it off in full every month. In recent years, with the help of this site, I have changed suppliers for some things and have saved a fair bit doing so. I will look to see if there are any other savings we can make though - I am especially keen to save on broadband and 'phone (currently with BT) and on gas/elec (currently with Eon) and possibly on mobile 'phones.

If we move our bank account, will it affect our credit rating at all? We bank with Lloyds TSB, not HSBC.

Thanks again.

marathonic

As far as I'm aware, some banks do a credit check for a current account so it'll show up as a search. I believe these drop off after a year though and shouldn't affect your credit report.

40andproud

Thank you for the info.

Thrugelmir

If you need to make savings when your interest rate is 1.5%.

Then you need to calculate the impact of a 5% mortgage rate on your finances.

Make some serious sacrifices until your financial position becomes clearer.

Maintaining the mortgage as is should be your first priority. Cutting back on mobile phones etc should be high on the agenda.