How to extend a mortgage nearing end of term

Reece16reece

Odd request, but coming to the end of my mortgage and will finally own the house. However, personal circumstance mean that I may need to seek a new mortgage on a property later this year. I've heard (could be wrong), that its easier to extend an existing mortgage past end of term, rather than apply for a new mortgage (I'm 55yr old) once an old one has lapsed.

If this is the case, how do I request my current mortgage lender to extend the term of my current mortgage that has 3 months to run on a repayment basis.

Thx

Reece:j

minimike2

The assessment for borrowing will be the same regardless if you look to remortgage later or add more money to an existing mortgage.

With only three months remaining you are probably already in the maturity phase and a lot of lenders will not consider a term extension at that point.

The only benefit you would see by extending it that you will avoid your sealing fee. However if you do extend and borrow more later, you are limiting yourself to that lender.

I would just wait until you actually need the funds and apply for a new mortgage at that point with all your options open.

glosoli

It may be worth remembering that if you pay off the mortgage, and the security is discharged, you could end up having to be legal fees to put a further mortgage on it.

Thrugelmir

Reece16reece wrote: »

If this is the case, how do I request my current mortgage lender to extend the term of my current mortgage that has 3 months to run on a repayment basis.

Extending purely means deferring repayment over a longer term. With 3 months only to run. Seems rather pointless.

To borrow more you need to apply and meet the criteria set by the lender.

minimike2

glosoli wrote: »

It may be worth remembering that if you pay off the mortgage, and the security is discharged, you could end up having to be legal fees to put a further mortgage on it.

Most lenders will offer the legal fees paid on remortgaging an unencumbered property.