Extending term of offset mortgage

spg1

Hi

I have an offset mortgage with First Direct which is roughly 25% LTV. It’s due to be end in six years’ time when I’ll be almost 61. Right now there is very little owing on it as I accessed some tax free cash from a pension, but I plan to carry out some home improvements so borrowing will go back up in the next year or so.

I’m quite interested in extending the term of the mortgage to end say when I’ll be 65 just to give me some flexibility on financial planning as I look to reduce and finish work ahead of state pension age.  There is no issue with me being able to pay the capital off whenever it does end.

Does anyone have any experience of doing this? Would I need to apply for a new mortgage? Is a mortgage lender unlikely to agree to extending the term until nearer the time the current agreement is due to end?

thanks in advance

dimbo61

You need to speak to First Direct.
If you have the Income both earned and pensions to support a mortgage they may offer you another deal or longer term 

Brie

I have a flexi mortgage with VirginOne (RBS) and found it very easy to extend the term.  I first did this when we were going through a tight patch but they were quite happy to simply change the end date which meant that there was less expected every month (not that we actually pay it IYKWIM).  I think the reason was I was able to prove that we would have the £££ at the right time.  This wasn't the same as remortgaging just an agreement in principle over the phone and then documents that they sent and likely we signed and returned to acknowledge the change. 

We did remortgage when we moved a couple of years back and extended the term further and again no hassle but being a move they required all the bells and whistles but it was all very agreeable again in part to us being able to provide proof of future money expectations as well as the fact the LTV dropped significantly due to a windfall at that time.

getmore4less

First direct changed their offset products quite a while back not as good as the older ones which tended to be lifetime trackers.

You will need to check if they will let you keep your current terms just change the end date.