Term extension

boris263

I have an interest only mortgage due to expire in March 14 for £54,000, current house value £160,000. My problem is this:- I have three endowments on this property that all mature at different times. This is due to time spent in the military, in that I was deployed on ops during one house buying venture, let down in another and finally securing a property on the third attempt. The prices of the properties kept changing, necessitating me to top up the endowments each time. The first endowment is due on time (Mar14) for £30,000 the second in June 14 for £11,000 and the final one in Nov 14 for £13,000. I have been notified of shortfalls in all three but have savings and share save schemes to cover these. My questions are these:- Do you think that my bank, Santander would agree to a 12 month extension on my mortgage on its present terms, bearing in mind that it is with Alliance and Leicester and when should I approach them. Another mitigating factor is I am 65 next month but I do intend to keep working until I get this weight off my shoulders. I was just wondering if anyone else has been faced with a similar situation and what they would suggest. please keep any replies in their simplest forms as I am not a financial expert

dimbo61

Think you need to speak to your lender.
Explain that you will pay off outstanding balance over 12 month period and ask for short term extension of loan.
Bring your paperwork to the meeting

Thrugelmir

What rate of interest are you paying on the mortgage?

boris263

I,m on a tracker plus 1 % if that makes any sense, but I do expect that they won't let me continue on that. I'll pay whatever they quote within reason but I don't want to go on another mortgage term that will involve set up fees and possible early settlement penalties. Am I hoping for too much in expecting the bank to be helpful?

Thrugelmir

You'll be charged the going interest rate if you extend the term.

Given your circumstances this isn't an issue.

Most likely they'll suggest going onto the SVR. Which allows flexibility as to repayment.