# Can I extend the term of my tracker mortgage without losing tracker rate



## rdoyle11 (6 Jan 2011)

Upon reviewing my new reduced net salary, I would like to extend the duration of my tracker mortgage, so that my monthly repayment can be reduced.  I pulled in my mortgage some years ago when I was more flush, so luckily my property is not currently in negative equity.  Can anyone tell me if this is an option I can avail of through my bank without giving up the tracker interest rate?


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## Brendan Burgess (6 Jan 2011)

Hi R

You don't have an absolute right to reduce your monthly repayments.  

You should approach your lender and ask them to reschedule it. If you are in financial difficulty, they will consider it. As it's a cheap tracker, they may agree to a temporary reduction in repayments but would expect you to resume your normal repayments later.

Under the Code of Conduct on Mortgage Arrears they cannot use these discussions to get you off your cheap tracker.

Brendan


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## twofor1 (6 Jan 2011)

Another consideration would be your mortgage protection, it probably only covers you for your existing term, while there is nothing stopping you getting a new longer policy, it will be an additional expense which could be substantial depending on your current age and health.


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## rdoyle11 (7 Jan 2011)

Thank you both for your responses.  I will contact my bank and see what options they are will to offer!


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## riddles (14 Jan 2011)

I currently have a tracker mortgage 121K left 16 years from a 20 year term.
I have 10K inheritance - if I pay the 10K off the mortgage and increase the monthly payments I can reduce the term to 10 years - this will not affect the tracker rate mortgage.  if at some point I need to increase the term will this affect the tracker if the extension was still within the existing term of the mortgage?

Thanks


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## horusd (14 Jan 2011)

Hu Riddles, I have a P/TSB tracker, paid off a few 000's over on it, and then also  overpaid it for a while. The end term altered to reflect all this.  I recently reduced payments back to original amt ( as it is better value to save overpayment and make on better deposit rates) with no effect on my tracker rate, and the end date simply changed to reflect this. I know p/TSB allow this ( I had asked before taking out mortgage), but I don't know if it applies to other lenders.


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## rainbowtrout (14 Jan 2011)

It is possible because I have done this in the last couple of weeks. 

I originally took out a 35 year mortgage in 2003. Over a number of years shortened the term so that it became an 11 year mortgage. Have 7 years paid and had 4 remaining. I'm a PS worker, so with paycut, pension levy last year and widening of tax bands this year I asked for the term to be extended by 2 years just before Christmas. Got the call to confirm that this has been approved just yesterday and paperwork is in the post. I have a tracker and will be retaining the tracker. So term is now 13 years in total.

My life insurance was set to run until 2017 anyway and more than covers what I owe on the mortgage so extending until 2016 hasn't been a problem. Had this not been the case the bank's mortgage advisor said all I would have to do is cancel the current policy and take out a new one for the extended term.


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