Fixed rate ending

loobie

in november, but am in a quandry.

We have a loan of 15k, costing us 214.15 a month. It was over 10 years. We are going to pay it off in november when we remortgage, but we could do with reducing the payments now. Would it affect our credit rating if I ask for the remaining balance to be taken over say 20 years? It will still be getting paid off in november, so will it make a difference?

MoscowFlyer

I may be wrong but AFAIA your credit rating itself would only be affected upon default of the payments on the loan. However, you'd need to disclose this loan to the lenders when making your application and a 15k loan could have an affect on how many lenders give you a mortgage, as they take into account existing debts, even if you do plan to pay it off when you get the mortgage.

UK007BullDog

As your loan is so small you will find that its best to stay with yourcurrent lender. Depending on the age of the oldest mortgage holder you can lengthen it for another 10 years.

The only way to reduce the monthly payments is by going interest only, but then you still owe the full £15K at the end of the term.