Natwest refusing to extend mortgage term

hulkhoganisthebest

Background is that I was made redundant approx. 15months ago and used the bulk of my redundancy to reduce the mortgage. Now have a 60% LTV based on last bank valuation.

New job pays approx. 13k less a year so to make things slightly easier on the outgoings I asked natwest to increase the mortgage term from 17 years to 25 (I will still be under 65yrs old).

However, decision by natwest was to decline this and the reason they gave is that I have been paying higher mortgage amounts with no issues for last 8 years and they don't wish to extend the term!!!

Is there anything I can do, as having to pay£650, as opposed to £500 makes things very tight. Any advice would be appreciated.

opinions4u

They don't have to agree to your request.

What rate are you paying? Why not remortgage elsewhere?

poet123

Re mortgage would seem to be your best option.

hulkhoganisthebest

I am currently on SVR of 4% as finished fixed term rate in Feb. At the same time of extending the mortgage term I wanted to remortgage with another fixed term rate, but the issue is the request to extend the term.

Have tried a few others HSBC and nationwide
but no one will lend me enough based on new salary and amount on cards which is approx. 6k. I have enough savings to pay off majority of CC but then worry I have no savings to fall back on.

Thrugelmir

hulkhoganisthebest wrote: »

Is there anything I can do, as having to pay£650, as opposed to £500 makes things very tight. Any advice would be appreciated.

The bank is expecting you to economise first. Before considering any request on hardship grounds. Obviously not aware of your particular circumstances. So from the banks point of view a general policy approach to many such requests they are receiving.

Thrugelmir

hulkhoganisthebest wrote: »

I am currently on SVR of 4% as finished fixed term rate in Feb. At the same time of extending the mortgage term I wanted to remortgage with another fixed term rate, but the issue is the request to extend the term.

Have tried a few others HSBC and nationwide
but no one will lend me enough based on new salary and amount on cards which is approx. 6k. I have enough savings to pay off majority of CC but then worry I have no savings to fall back on.

Lenders won't be interested in refinancing your credit card debt. That's where the issue lies.

hulkhoganisthebest

Thanks for the replies.

I understand about the CC amount and are in two minds as to whether to pay it off and cross my fingers I can build up some savings again.

Guess I will have to change the SVR to a lower fixed term rate. At least it will knock a few more quid off and if I do it online I will get a £150 one off payment!!!

Thrugelmir

hulkhoganisthebest wrote: »

I understand about the CC amount and are in two minds as to whether to pay it off and cross my fingers I can build up some savings again.

You can always use the credit card again. If you have an emergency situation.

First thing to do is analyse your outgoings and cutback. You'll find savings somewhere. As the saying goes "take care of the pennies and the pounds take care of themselves". So think small......