Adjust Mortgage term

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MLawlor

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I've applied to my mortgage provider to adjust the length of my mortgage from 5 years to 12 years because my eldest has started college and it's a money pit with accommodation etc. They seem to be dragging their heels in making a decision. I would of thought it would be straight forward. The mortgage is about 15% the value of the house. They'll get more money out me in interest. My concern is I can cover the payments until the new year but after that it's a choice fall behind in mortgage payments or pull my eldest out of college. It's not going to be the 2nd option! So does that mean my credit rating will be rubbish and forget about getting loans in the future? Or do I have to fall behind before they wake up and take my application seriously? Can I complain to ombudsman or however if they cause my credit rating to bottom out? I've had mortgages for 20 plus years and I've never missed a payment!
 
Is your mortgage with an active lender?

You could also look at the option of switching your mortgage to another lender for whatever term you wish.

Changing term is in effect a new contract, so the bank can't be forced to do it.

Edit: apologies I didn't fully read your post, and the fact you will go into arrears. The code of conduct on Mortgage arrears applies to you. You might be better approach from this angle and get the bank to come up with an alternative for you, rather than being proactive and seeking a specific term extension which sends it down an underwriting route in the bank.
 
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Yes they're active. I don't fancy changing with the hassle and expense of solicitors fees etc. And any one I've heard of taking a mortgage since the crash it's gone really slow and tedious.
 
Might your age be a factor? Most providers will happily grant a mortgage to people as long as they have it paid off 65-68 (banks differ slightly on this number).

If its not then there is no harm enquiring with other banks. I recently looked at switching to KBC from EBS and they would extend my term as well as offer €3k towards legal fees. You might end up with more money in your pocket, potentially a cheaper mortgage and the longer term you were looking for. At the very least talking to other banks would give you an option should your first bank say no
 
keane2097 said:
Solicitor fees to switch mortgage provider isn't a thing is it?
Click to expand...
Yes. They're not going to do it for free...

Edit: sorry comment was a little tongue in cheek, but not helpful. Part of the switching process is the customer needs a solicitor to provide security and good title for the bank. There's some good posts in switching over in the switchers forum. This is a good starting point
https://www.askaboutmoney.com/threads/tips-for-switching-your-mortgage.197574/

Most banks cover the fees through cash back offers.
 
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Thanks, some good advice here. Age isn't a problem. My only worry would be my bank account details would not look too healthy. I took out the original mortgage to pay back at a high rate to get rid of it and it's been a struggle the last few years as family got older. It's been worth it as I've knocked the stuffing out of the principle but time caught up with college fees. I think I'll enquire into it with other lenders. I'm just so surprised that it's not straightforward because the principle is relatively small to the value of the house but looks like the horror stories I've been hearing in the canteen about the banks since the crash are true. They want zero risk and everything signed in blood and quadruple checked before doing anything!
 
Some advice - don't pay you much attention to canteen talk. The only way you'll really know is if you apply.

If you post further details, posters here will be able to advise where to look for best rate, but if you're struggling you might have trouble meeting the affordability criteria of most banks as they'll assume a 2% interest rate rise.

Take a look at the 'best buys' posts if you don't want to post too much personal information, and make sure you're on the best rate available with your current lender.
 
It was never as simple as you think to increase a term on a mortgage, it was always a bit of a faff but it got even more difficult in recent years.
 
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