Endowment shortfall - extending mortgage term

secondment

Hi.
I have a mortgage which is due to end in 9 months time.
The mortgage is part re-payment & part endowment.
At the end of the term, there will be a shortfall of around £30,000.
I contacted the lender to discuss possible solutions & was told that I would be able to re-mortgage the shortfall.
My motrgage is a tracker & I currently pay 0.69%. Any re-motrgage would be with a new product & the interest would be around 2.9% (best current product).
I asked about possibly extending the term of the exisiting morgage to maintain the tracker rate, but was told that this would have an impact on my credit rating. I have an excellent credit rating & never had any problems servicing loans or credit cards or the mortgage, so if this is correct, why?
Thanks

bigmatt1174

I would ask why it would affect your credit rating? What adverse information would they as the lender pass onto the credit reference agencies? My guess is they want to get you off the nice tracker that you have and onto a rate that would earn them more money.

mystic_trev

As you have pointed out, your Mortgage with the Bank ends in 9 months time. The fact you have no 'Vehicle' in place to repay, means you will have to take out a new Mortgage and therefore the repayment terms which come with it i.e higher Interest rates!

dunstonh

It has no impact on your credit rating. Lenders routinely extend the mortgage, typically up to 5 years, for the amount of shortfall providing your mortgage is not in arrears and you have had no recent late payments.