Can you extend mortgage term while still in fixed rate?

NeverendingDMP

I'm just wondering if you are allowed to extend a mortgage term/length while still in a fixed rate.

If so do you just ring and ask (Santander) and is it a general conversation over the phone or a sending payslips/full on affordability type check.

We have a year before we can look at new deals with our lender and our ERC means it's not worth us swapping to a new deal yet but we are considering extending the term to free up some cash.

We have just under 18 years left and could comfortably extend to 25 years and still be less than retirement age.

We have 45000 equity but will probably need to stick with current provider for same amount when fix ends due to debts/defaults

We know it will cost more over time but we are considering it to relieve pressure for a few years and get the house ship shape before it becomes a money pit x

Thanks all

middleclassbutpoor

Simply extending the term will reduce the monthly payments now but increase the amount you repay overall.

Are you just looking to reduce your outgoings? If so, I would probably recommend going over to the debt free wannabe board just to post a statement of affairs and get some advice on other ways of freeing up cash on a month to month basis as there may be better ways to achieve what you are looking for.

sparkey1

Santander will want to do a full evaluation into incoming and outgoings, loans, credit cards etc. Not just a simple call. A full advised call with a mortgage adviser.

We wanted them to increase our monthly DD so we could pay £50 more previously. They wouldnt do it unless we did a full application in case we ever struggled in the future.

My experience of santander is that they are very cautious.

NeverendingDMP

Thanks everyone. I'm a lurker on the debt boards. Our SOA is pretty tight although there is probably the odd few quid in there if we went totally frugal.

We can afford the mortgage and have agreed payments for debts -it's just the question of saving for gutters and boring things like that

Very Useful feedback about the process and what information I would need to give to Santander. Saves me ringing up and opening a can of worms x

Think we are best just hoping for a new fix via our online mortgage account next year.

Thanks everyone

sparkey1

Santander will write 2 you 2 months in advance and there will be a few trackers and fixed rate deals you can apply for online. can be done in a few minutes. Really easy, and no additional checks. However if you want to extend the term, move to interest only, it will be a free application!

NeverendingDMP

Lovely. Ideally another fix for five years to get the defaults out of the way and may a dent in the debts. Who knows we might get lucky and get a slightly better rate. Ha ha Best bit is being able to do online with no questions...

Suseka97

NeverendingDMP wrote: »

Lovely. Ideally another fix for five years to get the defaults out of the way and may a dent in the debts. Who knows we might get lucky and get a slightly better rate. Ha ha Best bit is being able to do online with no questions...

We recently moved to a fixed rate from the BMR we were on (having dropped to that from a previous fixed deal a year and a bit ago). We are still in a DMP, but staying with the same provider (Nationwide) it was all done online in a jiffy. The new fixed puts us slightly better off (by around £25 per month) and is for the next 3 years. After that all our defaults will be off the files and with no more debt payments showing on our I&E we expect to be in a stronger position with regards to rates across a range of providers then. I imagine you'll be in the same position when the time comes too