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Mortgage increasing term

edited 30 November -1 at 1:00AM in Mortgages & Endowments
7 replies 981 views
shoebp12shoebp12 Forumite
89 posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi guys ive got a mortgage and want to increase the length of m/gage. I phoned them up and said they need proof of income. I dont really want to go through it if theyre going to be difficult about it as ive taken out a few credit after the mortgage.

has anyone had experience of increasing the term, difficulties etc

Thanks

Replies

  • betmunchbetmunch Forumite
    3.1K posts
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    If you are changing the term you will need to be reassessed as per the rules brought in last April.

    Its not the lender being difficult, its what they have to do
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • what are these rules
  • betmunchbetmunch Forumite
    3.1K posts
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    shoebp12 wrote: »
    what are these rules

    google Mortgage Market Review something should pop up.

    It came into force last April although many lenders started implimenting their interpretation of them slightly earlier.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ThrugelmirThrugelmir Forumite
    81.3K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    shoebp12 wrote: »
    what are these rules

    From the borrowers perspective affordability. As this is a change in contractual terms lenders will perform a new credit check. Though this has been very standard practice for some years. As people who wish to extend mortgage terms will more than likely be doing so for reasons related to their own personal finances. Which will have changed negatively.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • edited 1 March 2015 at 5:59PM
    Amy56Amy56 Forumite
    58 posts
    edited 1 March 2015 at 5:59PM
    Thrugelmir wrote: »
    As people who wish to extend mortgage terms will more than likely be doing so for reasons related to their own personal finances. Which will have changed negatively.

    Hi, I hope you don't mind me jumping on to his thread?!;)

    I have a phone interview lined up with my bank (HSBC) next week, as we too want to increase our mortgage term.

    I've been nervous about it, but I couldn't put my finger on why - but this post has confirmed what I must have been worried about!:)

    We have been overpaying our mortgage for a couple of years now, and I must admit that it's become a big obsession of mine! :embarasse. I've found myself wishing the time away until we repaid the mortgage and tbh it's having a negative effect on our life as I'm not enjoying the time I have now with my husband and young children.

    I've sat down with DH and we both agreed that we need to get a better balance and have been looking at the good rates on offer at the moment and by changing our tracker, stopping over overpayments and increasing our term to 15years (it's not a lot different than the 12 years we've currently got left) - then we wil be better off by several £100 a month and can live more for now, whilst still repaying our mortgage by the time we are 55.

    To me it seems like a great option, and I'm quite excited about living more for now. But having read the above comment - will HSBC think there is something more sinister going on and possibly decline it just because of this? (I can't see that income will be a problem - we are talking about a debt of £135k, (66% LTV) but DH basic income is £50k & mine is £12k and we have no other loans/debts).

    I think I've read so much in the past about HSBC being a tough bank, that I'm getting all worked up!;)
  • jayson043jayson043 Forumite
    66 posts
    Why are they being difficult? You want to take longer paying them, and they want to know if you can afford it.
  • Yorkie1Yorkie1 Forumite
    11.3K posts
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    Amy56 wrote: »
    Hi, I hope you don't mind me jumping on to his thread?!;)

    I have a phone interview lined up with my bank (HSBC) next week, as we too want to increase our mortgage term.

    I've been nervous about it, but I couldn't put my finger on why - but this post has confirmed what I must have been worried about!:)

    We have been overpaying our mortgage for a couple of years now, and I must admit that it's become a big obsession of mine! :embarasse. I've found myself wishing the time away until we repaid the mortgage and tbh it's having a negative effect on our life as I'm not enjoying the time I have now with my husband and young children.

    I've sat down with DH and we both agreed that we need to get a better balance and have been looking at the good rates on offer at the moment and by changing our tracker, stopping over overpayments and increasing our term to 15years (it's not a lot different than the 12 years we've currently got left) - then we wil be better off by several £100 a month and can live more for now, whilst still repaying our mortgage by the time we are 55.

    To me it seems like a great option, and I'm quite excited about living more for now. But having read the above comment - will HSBC think there is something more sinister going on and possibly decline it just because of this? (I can't see that income will be a problem - we are talking about a debt of £135k, (66% LTV) but DH basic income is £50k & mine is £12k and we have no other loans/debts).

    I think I've read so much in the past about HSBC being a tough bank, that I'm getting all worked up!;)

    Far better to start your own thread so that the OP's replies don't get confused or lost among any to your post :)
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