Can you extend term of mortgage just as easily as shortening it?

ukbondraider

Lets assume someone takes out a 25 yr term mortgage.

If this person then shortly after taking out the mortgage reduces the term to a 10yrs (as oppose to keeping it at 25 yrs and overpaying) can he/she then extend it from the 10 yr term to say back to 25 yrs in the event his/hers situation changes and he/she wishes to lower the monthly amount?

Basically I know it is easy to reduce the term but is it just as easy to extend the term?

Thanks

Scott

From my experience, extending your term is usually easier, assuming you're wanting to extend it within the lender's guidelines (i.e. their max age, max term limits, etc).

There will be a charge for doing either of them, though, usually around £50-£150.

Lenders will often ask more questions about reducing the term, especially if there is an ERC on the account, since you're effectively overpaying on the mortgage.

MarkyMarkD

Most lenders charge for changing repayment method e.g. from repayment to interest only, or vice versa, but I would agree with Tustastic that most don't charge for changing repayment term.

LisaT186

Some charge an admin fee circa £25 - £50, but most are happy to change the term. Expect questions about why, particularly if you are extending it past retirement age (anticipated or state). Also bear in mind the extra cost of interest over the longer term.