To extend term or not on existing fixed

Richyofbeat

Does anyone have any pointers on whether this could be a good idea? 

Have a fixed term for another 3 years - I am thinking of extending the term for a small fee to reduce the monthly payments until the next renewal date. It could effectively half my mortgage amounts giving me more money in pocket now. 

At the end of the 3 years our circumstances will be better as my wife will return to work following our youngest starting school so the plan would be to reduce the term again when finding a new deal, back to what it would have been. 

Understand interest will go up over life of mortgage etc but as long as we reduce term again at renewal I think it could make life easier now?

Am I missing somethin?

Thanks for any thoughts 

housebuyer143

I personally always go with the longest term I can and I go interest only to get the payments as low as they possibly can be and then I overpay if I so wish. 
It's probably not the most money saving idea but I like the fact that if times get hard you are only committed to the lowest possible payment. You can always over pay but you can't underpay. 

MFWannabe

What is your current interest rate? 

What is the ERC on your current fix? 

What would be the interest rate on new terms? 

What is current mortgage term? How many years currently left? 

dimbo61

Most lenders won't allow you to go Interest only.
Now if you can extend the mortgage term for a Small fee maybe that will work for you in the short term  but Please remember that the longer the term  the more Interest you end up paying.
So if your lender will allow you to extend the term and you would really struggle to pay the new higher mortgage payments along with all the other increased costs everyone is now being hit with then apply to your lender.