Extending A Mortgage

[setanta78]

I took out a mortgage with PTSB in 2003 over 30 years.I changed to a Tracker rate with PTSB some time later (2006 I think). I then reduced the term of the mortgage in 2009 and began making overpayments when ever I got some extra cash etc..
I checked last month and the term was down to 10 and 8 months.

Anyway, my hours in work have been reduced and with the upcoming budget I felt it was necessary to extend the term to 20 years. I wrote to PTSB on the 5th October and instructed that this be done . Having heard nothing from them since, I contacted them today. They told me that they sent a Standard Financial Statement to me on the 15th of November and that they were waiting for me to return this. I then have to arrange a meeting with a PTSB branch manager and discuss the request with him/ her.

My concerns are:
1. The length of time taken to respond to my initial letter. 5/10-15/11 six weeks!!
2. I am extending the term, but it is still well within the time frame of my mortgage agreement.
3. The process has changed and seems to me, to be designed to be unnecessarily awkward.
4. Can they refuse to extend the term?

I never reduced the term on my life cover for the mortgage.

 

[huskerdu]

My concerns are:
1. The length of time taken to respond to my initial letter. 5/10-15/11 six weeks!!
2. I am extending the term, but it is still well within the time frame of my mortgage agreement.
3. The process has changed and seems to me, to be designed to be unnecessarily awkward.
4. Can they refuse to extend the term?

I never reduced the term on my life cover for the mortgage.

1) If I were you, I would make a complaint about this, it is very practice, but its unlikely to change what happens form now on

2) You should make sure you have all documentation especially from the change of the term.

3) These days, in allk lending institutions all lending has to be approved centrally and they go over every application carefully, even a request like yours.

4) Dont know. Again, did the documentation when you shortened the term have any details ?

They are very likely to attempt to refuse you a tracker mortgage at your current rate. You may be entitled to keep it, or you may not, depending on the T&C of the original loan offer and the agreement when you changed the mortage. Read these carefully.

 

[wbbs]

It's too late to tell you this now but I would always advise someone not to officially shorten their term but to just increase their repayments instead if this is allowable for the mortgage product you are in. This will still shorten the loan term but will give you the option of going back to the old repayments if needs be. However that is no help to you now.

A term extension as you have now requested is treated similar to new lending or under their procedures for dealing with mortgages in difficulty, differs between banks. More than likely in this case it has gone to the section dealing with mortgage difficulties which would explain the long wait as they seem to be very far behind with these request. Either way you are unlikely to have an automatic entitlement to go back to the original agreement that you changed when you shortened the term. If your income and outgoings show that you need to get your repayments reduced then I would think you have a good chance, otherwise it might not be so simple.