# Extend term of my mortgage.



## lucy09 (20 Apr 2010)

Hi, 

We took out a mortgage of 200,000 over 25 years in March 2007 . It is currently 2.25 % and our monthly repayments are 891.38 ( minus 75 for TRS) . We have asked the bank to extend our term and they have agreed to extend it by five years. A few stupid  questions how do I know what kind of a mortgage we have ? Is it a tracker ? the repayment amount has remained the same for the last year and what would our new monthly repayments be if we extend the term by five years? Thanks in advance.


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## WinWin (20 Apr 2010)

I'm just guessing here, but has the bank just agreed to the extension, but you still have to go in and sign a new agreement etc, all your questions should be answered in the new agreement.
If you are currently on a tracker (ECB+1.25%) no doubt you will lose it in the new agreement.

Will the 5yr increase help you much? wont the short term benefit just be wiped out by future (this year) interest rate rises.


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## niceoneted (21 Apr 2010)

It sounds like you are on a 1.25% above ECB tracker alright. 
I would be reluctant to move of this as you may well lose it and find that you will end up paying similar although you extended the term by 5 yrs. 
Confirm all this before you sign off on anything.


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## addob (21 Apr 2010)

I do know that at the begining of the year we also extended the therm of our mortgage by 3 years and we can off a fixed rate and on to a tracker. 

So there may be hope for you to keep yours! We're with KBC.


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## Brouhahaha (21 Apr 2010)

lucy09 said:


> Is it a tracker ?



Read the original documentation for your mortgage and look to see if it mentions your rate staying at 1.25% above the European Central Bank rate, if it does it is tracking the ECB rate.

Be very wary of changing your mortgage if this is the case as your rate will increase if you change and it will no longer track the ECB.

Be wary of changing anyway, look at the new rate/conditions carefully. Be aware that it will be a variable rate that will definetly rise soon. Use the mortgage calculator here to work out the new repayment and interest costs. Do the same checks for when the rate is increased by at least 1%.


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## duchalla (21 Apr 2010)

Hi Lucy,

Reckon ye are on a tracker, what would €200K on its own buy 3 years ago?  I'd be very, very slow to give up my tracker...


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## lucy09 (23 Apr 2010)

Hi thanks for the replies. I looked at my mortgage and yes it is a tracker variable ECB + 1.25%. I must ring the bank and find out more but is it definite that if I extend the term I will lose my tracker because if so it is not worth it.


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## lucy09 (29 Apr 2010)

Hi, Got onto the bank, they confirmed that if we extend the term of the mortgage it will not affect our tracker, thanks for all the replies


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## callybags (29 Apr 2010)

You should make sure you get this confirmation in writing before proceeding.


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