Extending mortgage term - chances?

Hutch100uk

To keep it brief. Separated from partner and been trying to sell the house for a year now.
2 year fixed rate mortgage is up in September where mortgage will revert to standard rate and I can't afford the increased payments.
Have a 25 year mortgage (nearly 2 years in) but I'm 42 and ex is nearly 46.
Spoke to mortgage advisor who suggested asking Halifax to extend to 30 years by telling them we don't intend to retire until 75. He said they may agree but its on a case-by-case basis.

My question is, has anyone experience of doing this? Would I not be better telling the bank the house is up for sale and I just can't afford the increased payments? The extension surely shouldn't matter if the house is going to be sold. Would they not prefer to know they will get the payments until the house is sold?

National_Debtline

Hi there,


Whilst you can make this request informally, it would be completely at the discretion of the Halifax and, unfortunately, I cannot see what benefit it would be to them, to restructure the payments without formally amending the mortgage. If you wish to formally extend the term then you would be re-mortgaging and that normally incurs costs.


You may agree a sale and it be completed (or very close to completion) by September, so you may not need to approach the bank at all; however, depending on the level of equity, sale price, etc. you may wish to speak to mortgage lender about other options. That can include things like a temporary full or part payment holiday or switch to interest only, when the current product ends September. You could explain the house is on the market and that you would struggle on the standard variable rate. Highlight that if they agree to this in advance then it would prevent arrears and may help a sale move quicker.


Alternatively, you may need to speak to your ex about ensuring they continue to contribute sufficiently until it is sold because you are both liable and, presumably, want to keep the mortgage up to date to benefit from the equity as much as possible. Good luck,


Laura
@natdebtline

dimbo61

Have you got children living in the property ?
Is there enough equity in the property for you both to move on and buy a suitable property for yourself and ( kids ?) and your EX get a property.
Were you married ? Pensions ? Income ? House prices in your area ?

Thrugelmir

Have you considered asking the Haifax to allow you to switch to an interest only basis. Say for a 6 month window. Allowing you a window of time to find a buyer.

Is there equity in the property. Dropping the price is the way to facilitate a sale. Enabling you both to move on with your lives.

Hutch100uk

Hi, thanks for the replies. I live in the property with our 2 children. He doesn't pay towards the mortgage as he can't afford to because he rents (and I agreed this as I thought we would have sold by now).
There is no equity in the property and to complicate it further, we have Help to Buy loan also.
The property isn't overprices, we've just had 2 sales fall through and a couple of offers too low. Another house identical has just gone on the market for £10k more. Its only 2 years old so is immaculate.
We're also not married.
Even if my ex agreed to just re-mortgage in September to another low fixed rate, we would be tied in with early payment fees again.