Cost of Living Support question.....

productof80s

Evening all,

I've had 3 mortgages before so well versed in how they work, credit scoring, and all things to do with them- just a point to note

Short story- We are now planning to put our house on the market in around mid-August to move to a 4 bed.....

In October last year we took the Cost of Living Support thing from our lender, just to extend the mortgage term X number of years to reduce the actual payment. Reason being, we needed work on our roof and so I used my CC to pay for this. Paying off good amounts now so all in all, it just helped a little. 

I guess we didn't 'need' to do it, but it helped a little with the payments so I thought why not.

I checked before accessing it that it wouldn't affect your score in anyway, there was no affordability assessment or any other type of formal check....

I am confident, and have checked, that when we apply, we will be in a good position to get a mortgage (or rather port it) to our last final house, so just wanted to check this COL application to not affect us in any way.

It's just my 'devils advocate' point in my head and them saying "If you didn't need it, why did you take it?" question...... Well in honestly, I thought why not.. But this COL support package did not allow discrimination according to the many documents I've read so will not have any/little impact.

Can anyone well versed in the subject let me know their thoughts?

Many thanks and regards in advance.

Hoenir

Extending the term to reduce monthly outgoings. Simply adds considerably more interest that has to be paid back. Won't impact a lenders view of your financial position per se. Affordability will be assessed at the time of the next application. 

Altior

That's a fallacy really, as the cost of any additional interest only comes at the end of the mortgage term. When the £ will have far less value, compared to when you get the benefit of lower mortgage repayments. Plus, you get the utility of the funds now, rather than in say, 20 years' time. We generally get less demands on our cashflow the further we get into our life cycle. Horses for courses though, and I appreciate some people are primarily concerned with clearing their mortgage liability asap.