Extending a mortgage?

W

wheels

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I have a 30 year mortgage that's a year old in January. I'm on a fixed rate for two years at roughly 5.2% but I'm really starting to worry I'm stretching myself too far with it, especially with rental income dropping (I'm losing out over 100euro per month).

Is it possible to extend it by five years and make it a 35 year loan in total?

My bank is KBC and to be honest, switching is not an option. I just want to get it as low as possible. I know I pay a lot more in the long run, but if it makes it manageable and I'm not constantly worrying about losing my house, I don't mind.
 
wheels

I had the same discussion with bank last week (AIB in my case). they said 3 options:

could change morrtgage to interest only for a year.
repayments currently 1500, this reduced to 950 approx????

could requst a payemnt holiday for 6 months.
this reduced to 0 obviously for 6 months but goed onto balance


could extend term from 25 to 30 years.
this reduced from 1500 to 1200

so you might have the same options

I also asked about the possibility of extending term and then going interest only for a year - they didnt blow it out of the wtaer saying that this would reduce payemnst from 1500 to 1200 to 780???


i know most of the above are not ideal in terms od delaying payemnst / extending terms but like you , priority at the mo is reducing monthly cost

best of luck
 
GreenFlag,

Thanks for that! I wouldn't be too keen on going interest free as I would assume by the time I start paying both again it'll be even higher?

It's given me a lot to go with though. I'll talk to them shortly.
 
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