Quick Mortgage Question

GillianY1

Hi,

Does anyone know if a remortgage with existing mortgage lender (RBS - not tied in to any fixed rates) for the same amount but extending the term of the loan has to be put through as a new application with the usual credit checks and valuations performed?

Thanks

kingstreet

A customer retention deal - a change of product with existing lender does not normally require any underwriting, but where an upward change of term is concerned, I suspect there may well be checks of affordability needed.

For example, the lender would need to check the new term does not extend into retirement.

You're going to have to ask them, I'm afraid.

GillianY1

Thanks for that. I am looking to change back to 25 years which would mean my husband would be 60 and I would be 55 at the end of the loan term. We are only wanting to change it for a couple of years to reduce our payments in the short term then would be looking to switch back to 14 years repayment in 2 years time. I will give them a call tomorrow.

ACG

I used to work for a different lender and they never did credit checks where there was no additional borrowing... but different lenders have different criteria.