Remortgaging and extending the borrowing period

Green_Rhino

I have two mortgages; one a FT deal that has expired and is attracting reasonable rates; the other was a 2 year FT deal which expires next month and was taken out to carry our home improvements. Both have around 15 years to run.


I'm deeply unhappy in my job and am looking to leave in a few months whether or not I have a new job to go to.
I'm confident I'll find a job but will likely have to take a cut in salary. As a result I'm looking to remortgage, likely for a 2 year FT deal, and extend the period of borrowing to 25 years in order to reduce the monthly payments. I've had a look around and I think that I can save around £350
per month.


The plan is that when we remortgage in a couple of years we reduce the period of borrowing to 13 years and so we're back on track.


Has anybody done similar?


My feeling is that it's not ideal but ultimately life is too short to be unhappy.

pollyanna24

I have just done this with my Nationwide mortgage and I found it very easy to do.

I originally took out a 35 year mortgage nine years ago and have extended it by 5 years as the maximum I was allowed to have a mortgage for is 40 years.

I did this to make the repayments easier for when I buy my brother out of the property next year, so the monthly payments will be lower, but I will still overpay whenever I can. The extension of the mortgage was just a safety net for me if that makes sense.

If I was you, I wouldn't shorten the term in a few years, but overpay (of course, this assumes you can without penalty). The mortgage I have at the moment I can make unlimited overpayments.

dimbo61

How old are you ?
Most lenders will not lend past your state retirement age !

Green_Rhino

I'll be 65 in 25 years and so hopefully won't be an issue