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Mortgage increase term - another question?!
Amy56
Posts: 58 Forumite
Quote:
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.
Originally Posted by Thrugelmir
Hi, I read this quote on another thread and it got me thinking...
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! . 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!
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.
Originally Posted by Thrugelmir
Hi, I read this quote on another thread and it got me thinking...
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! . 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!
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Comments
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I don't think they will automatically assume something iffy is going on. They will ask you to confirm your financials are still the same and they may credit check you. As long as everything in your finances is fine I wouldn't worry about it.Changing the world, one sarcastic comment at a time.0
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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!
Don't get complacent over current low interest rates. At some point in the future they will rise. Now is the time to be making sacrifices while rates are low.0 -
Even banks cannot read minds - yet.
If they don't like your plan, take your case to another lender who will accommodate you.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Thrugelmir wrote: »Don't get complacent over current low interest rates. At some point in the future they will rise. Now is the time to be making sacrifices while rates are low.
Having children is just the time when sacrifices are being made!I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Having children is just the time when sacrifices are being made!
Thank you - I think that's what I've been realising. I've been very caught up in clearing my mortgage as quickly as possible whilst rates are so low, that I'm in effect wishing their childhood away, just because I want to be mortgage free.
Don't get me wrong, I understand that rates will undoubtedly go up, and we are not all of a sudden going to go wild with spending - but I just want to live a bit more whilst my boys are still young and want to be doing things with us:)
It's all about getting more balance in my life - whilst still being sensible with our money!;)0 -
Thrug would have you all on bread and water until your debts are zero!I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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