HSBC mortgage extending term

jkwer521

I am coming to the end of a fixed rate period for a mortgage with HSBC. I would like to extend the term to reduce the payments, but I am a bit concerned about a few unknowns. It seems like I would have to go through a whole application as if a re-mortgage, but I'm assuming some of it would be different to the original application. Does anyone have any experience with my questions below? I have tried searching but not found much specifically on this.

A simple rate switch would be simpler, but I would prefer to extend.

1 - Is a revaluation required? If so, how would it be done?

2 - If a revaluation is required, what if the revaluation is lower than the indexed valuation they would have used for a rate switch and I end up in a different LTV band? Would I be able to decline and just do a rate switch?

3 - Can I do an extension and a rate switch at the same time (ie at the end of my current fix)?

4 - Do I have to wait until the end of my fixed rate period to do an extension, or could I have done it at any time?

5 - Does it take a lot longer than a rate switch?

6 - Are there any other things I should know about doing an extension application? Is there any reason why they would decline an extension (assuming all other financials have remained the same)?

My main concern is that I somehow trigger something that leaves me without the original option of a simple rate switch. Eg if they value the property low and then the LTV is like 100% and I'm somehow stuck on the standard rate.

csgohan4

customer retention products are available usually around 3 months to the end of the fixed term which has no credit check and you can change products. Changing the term will usually involve a full credit check for affordability purposes and I am sure your aware, extending the term means paying more interest

[Deleted User]

1. No. They will hold an indexed valuation 

2. N/a

3. Yes. You will need to do it on the phone though, I don't think the website supports it if it's a term extension 

4.  Anytime with most banks.  Your mortgage rate is fixed, the overall term isn't and can be changed at any time

5. Yes.  Rate switch takes about 30 seconds.  Probably  60-90 mins for term extension with extra time to send documents in to be assessed. 

6.  If everything remains the same then only thing I can think of is if it takes mortgage term beyond retirement age