resheduling a 23 year mortgage out to a 34 year mortgage, what are the pitfalls? Help

C

confused.ie

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Sorry to bother ye,

I currently have 23 years remaining on a 30 year mortgage. the TRS is ending next month.

Due to pay cuts etc, I am approaching entering into arrears, not yet though.

The only option EBS are offering at the moment is extending the term out to 34 years.

I understand that if i repay the mortgage over the 34 years I'll end up paying more interest. however If my financial situation improves I aim to reduce the term back to it ending in 23 years from now e.g 2033. the original date.

My question is even if i reduce the term back to the original 2033 end term will i still have to pay the interest based on the 34 year mortgage with a 2044 end term.

And are there any other pit falls that could be contained in this move.

Many thanks in advance.

Confused.ie
 
This is the first time I've heard of banks doing this. It's quite an interesting way of dealing with a mortgage going into arrears.

To answer your question: While you are paying back the mortgage over 34 years then you pay the principal and interest that is relevant for that length of mortgage. If you are let revert back to a 23 year mortgage then you will pay the principal and interest relevant to that length of mortgage. You certainly won't be paying back interest on a 34 year mortgage when it's a 23 year term.
 
Thanks, Goingforgold,

They didn't say that i could reduce the term back to the original end term date, however they said I could increase my monthly repayments, therefore, shortening the term. This probably means something completely different, than what i asked about earlier, I took it to mean the same thing. Does this information, change things??

Once again thanks.

Confused.ie
 
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