Bank won't extend mortgage term

G

GC2016

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Just wondering about this. We have small mortgage of just under 100K and 8.5 years left to go on the repayments. We used to have 2 wages, now we have 1 and will have one for the foreseeable future as there are twins arriving. The main earner in the house earns a decent amount of money, but we'd like to extend the terms of the mortgage as there is little left every month (about 150 euro). We've never missed a payment, every debt paid in full, and bank is not interested. I do worry about the extra expenses mounting over the next few years and as we're only mid thirties I'd have thought the banks would listen but no. We don't want an arrears process etc, and we'd be happy to start a new mortgage if needs be but they just won't help.

Do you think there is any point in looking to another lender for a mortgage with a longer term or is this also not done in the industry?
 
It's worth your while trying other lenders but what rate are you on now? The mortgage amount is small but that's all relative as it will depend on your income with allowances made for dependants and with repayments stress tested by the bank on a higher interest rate.
 
Would imagine a longer term would lessen the risk. If you are young enough to have twins then age is not a barrier to an extended mortgage.

Try other lenders
 
My contribution here is probably unhelpful. The original poster is paying the mortgage and never missed a payment. Circumstances changed and there is no question of default. The Lender won't extend the mortgage. What is left to pay on the mortgage is just the price of three good cars. From where I sit and in the current financial climate this Lender is crazy.

I wonder what would happen if the OP just paid a lesser monthly amount.
 
Leper said:
I wonder what would happen if the OP just paid a lesser monthly amount.
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In all probability they would get away with it. They could just continue paying this for the next few years and it's unlikely that the lender would seek or get an order for possession.

However, their credit record would be immediately shot and they would find it almost impossible to borrow for some years.

Leper said:
From where I sit and in the current financial climate this Lender is crazy.
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We don't know the mortgage rate or the lender, so it's not possible to say that. If it's a tracker mortgage, they are doing the right thing for themselves. They can get a much better return on the money from another borrower.

If it's Danske Bank or Bank of Scotland Ireland, they want out of Ireland and it's better for them if the borrower refinances elsewhere.

Brendan
 
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