extending mortgage term

Thrugelmir

kingstreet wrote: »

Exactly. They are looking at each case, then applying pre-sale affordability checks they shouldn't for the reasons given, then saying no, you can't afford it.

They then continue to charge them higher payments than what they couldn't afford on the calculator.

It is completely perverse.

Again I repeat Without the full facts it's impossible to comment. In my persopnal experience the one thing people are is over optimistic regarding the state of their own finances. Affordability has a totally different connotation to a borrower than a lender.

kingstreet

The OP has gone along to their lender and said they cannot afford to pay their current payment £x. They have asked for the term to be extended so they can pay £y.

The lender has said they can't afford £y, when it is less than £x which the borrower has already said they cannot afford.

The borrowers are 44, so a 22 year term would expire before state pension age. I would agree that a term beyond that should not be given.

The borrower is saying they are in financial trouble, next step arrears. I repeat, this is not a new mortgage. They are not asking to move to a new home and borrow more, nor are they asking for a lower rate product. They are exactly the people the FSA/FCA rules were intended to help.

I cannot see what else there could be in their financial circumstances which should make the answer to this request as anything other than yes.