Yes, it is generally possible to extend your mortgage term, subject to approval from your lender. Extending the term can lower your monthly payments by spreading them over a longer period, but it may increase the total amount of interest you pay over the life of the mortgage.
Eligibility and Process:
Eligibility Criteria:
Not all borrowers will qualify for a mortgage term extension. Lenders often have specific criteria, including your age, income stability, and the remaining mortgage balance.Lender’s Approval:
You must approach your lender to discuss the possibility of extending your term. They will assess your financial situation, including any changes in income or circumstances since your mortgage began.Impact on Total Interest Paid:
Extending the term of your mortgage means you’ll be paying interest over a longer period, potentially increasing the total amount of interest paid over the life of the loan.Benefits and Considerations:
Reduced Monthly Repayments:
A longer mortgage term can lower your monthly payments, making your financial situation more manageable.Long-term Financial Impact:
While extending the term can ease immediate financial pressures, it’s important to consider the long-term implications, including higher total interest costs.Seeking Advice:
It’s advisable to consult with a mortgage adviser to understand the implications fully and explore if extending your mortgage term is the best course of action for your financial situation. A professional can provide personalised advice, considering your financial goals and circumstances.Conclusion:
Extending your mortgage term is an option for some borrowers but requires careful consideration and approval from your lender. It’s a decision that can provide short-term relief but may have long-term financial implications.
Answered by:
Natalia Barry
Mortgage and Protection Consultant
Last Updated:
18.06.2024
Answered by:
Natalia Barry
Mortgage and Protection Consultant
Last Updated:
18.06.2024
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