Mortgage extension current term ending

Lemont

Hi, My current mortgage term with Barclays is coming to an end. I'm applying for a term extension, i.e a remortgage with them.

• Since this is an extension application, will the bank still send a surveyor for this type of application?

• I’m aware that the full amount becomes due on the mortgage end date. What if the application is still in progress at this time? What happens?

• If  Barclays refuses the application, and I need to make a mortgage application to another lender, will  Barclays give me any time to sort this out? What happens?

Thanks

eschaton

You would most likely move onto the variable rate. 

It will be in your mortgage agreement as to what happens. 

silvercar

They will move you to their standard variable rate. They will also write to you reminding you that the mortgage needs repaying. Eventually they will seek to repossess with all that goes with that. Effectively you have a few months, possibly longer.

Hoenir

Some further detailed information would be helpfull. Not entirely clear whether you have a fixed term product coming to the end or the actual mortgage is due for repayment. As it's on an interest only basis. 

MWT

Lemont said:

Hi, My current mortgage term with Barclays is coming to an end. I'm applying for a term extension, i.e a remortgage with them.

This sounds like you are reaching the end of an interest only mortgage, or perhaps an offset mortgage where you have an outstanding amount due to having used the ability to borrow more during the term of the mortgage.

Either way they will be treating this as a new application and will want to check affordability, property value etc.

Are you trying to get a repayment mortgage or interest only?

Lemont

Hi yes that’s right, reaching the end of interest only mortgage, looking to a repayment mortgage on the same property. Any tips apart from submitting the paperwork? 

Thanks in advance 

MWT

I'd suggest you talk to a broker, depending on your circumstances Barclays may not be your best choice and if you have a relatively short amount of time you want to get the new mortgage in place as soon as you can.