If you’re a homeowner in Leicester, there are many reasons why you might consider remortgaging your property. Perhaps you want to release equity to finance a large expense, like home improvements or debt consolidation.

Alternatively, you might be looking for a better deal on your mortgage repayments or want to switch to a different type of mortgage product.

Whatever your reasons, it’s important to explore all of your options when it comes to remortgaging. While many people focus on getting a lower interest rate or releasing equity, there’s another option that you might not have considered: remortgaging to extend your term.

By extending your mortgage term, you could potentially lower your monthly repayments, making them more affordable and giving you greater financial flexibility.

This could be especially beneficial if you’re experiencing financial difficulties, or if you want to free up some extra cash to invest in other areas of your life.

At Leicestermoneyman, we understand that every homeowner’s situation is unique, which is why we offer a range of remortgaging options to suit your individual needs.

Whether you’re looking to release equity, lower your monthly payments, or extend your term, our experienced advisors can help you find the best solution for your circumstances.

So if you’re considering remortgaging in Leicester, be sure to explore all of your options – including the possibility of extending your term – and get in touch with us today to find out how we can help you achieve your financial goals.

Why would I remortgage in Leicester to extend my term?

The length of time you agree to pay back your mortgage, known as the term, can significantly impact your monthly mortgage payments. Many homeowners opt for a term of 25-30 years, which can be daunting to pay back such a large amount over a long duration.

If you are part way through your mortgage term, you may find it challenging to keep up with your payments, especially if other bills have increased. In such a scenario, you may consider remortgaging to extend your term.

By extending your term, you can spread your mortgage payments over a more extended period, which can lead to lower monthly payments, thereby freeing up more disposable income. There is a downside to this option as you will end up paying more back overall, including additional interest.

It is crucial to weigh the pros and cons of extending your term before making a decision. While it can make your monthly payments more affordable, it may not be the best option for everyone. You may end up paying more in the long run, possibly even into your retirement.

If you are considering a remortgage in Leicester, there are several options available, including remortgaging to release equity or for home improvements. Extending your term is another possibility, but it is essential to seek professional advice before making a final decision.

Can I remortgage in Leicester to extend my term if I’m borrowing more money?

Extending your term can be a viable option if you’re looking to remortgage in Leicester and need to borrow additional funds, release equity, make home improvements, or consolidate debts. It’s important, however, to weigh the pros and cons before making a decision.

Extending your term can lower your monthly mortgage payments and increase your disposable income, making it easier to manage your finances. This can be especially helpful if you’re going through a difficult financial period, facing unexpected expenses, or experiencing a change in circumstances.

On the other hand, extending your term will mean that you’re paying interest over a longer period, which can result in you paying more overall. This is something to keep in mind, especially if you’re approaching retirement age or have other long-term financial goals.

It’s important to note that extending your term may not always be possible, as some lenders may have specific criteria or restrictions. It’s also important to consider other factors, such as fees and charges, when exploring your options for remortgaging in Leicester.

Ultimately, it’s important to seek professional mortgage advice and do your research before making any decisions about remortgaging in Leicester.

Whether you’re looking to extend your term, release equity, consolidate debts, or make home improvements, there are a variety of paths you can take to achieve your financial goals.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

When wouldn’t I be able to remortgage in Leicester and extend my term?

Remortgaging can be a great option for homeowners who are looking to ease their financial burden. However, it’s important to note that each lender has their own set of criteria that must be met before extending the term of a mortgage.

Factors such as age, type of mortgage, and any outstanding mortgage payment debts can all play a role in determining whether or not you are eligible for a remortgage in Leicester to extend your term.

Some lenders may have strict age restrictions, requiring borrowers to pay off their mortgage before they reach a certain age.

Fortunately, if remortgaging to extend your term is not an option for you, there are other paths to consider. A dedicated mortgage advisor in Leicester can help you explore alternative solutions that will help lower your monthly payments and improve your financial situation.

At our company, we believe that everyone deserves to enjoy the benefits of owning a home without the stress of high mortgage payments. That’s why we take the time to carefully review each client’s unique situation and recommend the most suitable options for them.

Our goal is to help our clients achieve their financial goals and find the best possible solution to meet their needs.

Can I remortgage in Leicester to extend the term of my interest only mortgage?

Extending the term of an interest only mortgage can be a challenge, as not many lenders allow it. While some may allow it, you will still need to pay the lump sum of interest at the end of the term, and some lenders may not want you to delay it any further.

Residential properties are typically on a repayment mortgage, and interest-only mortgages are now less common. Instead, they are more commonly attached to buy to let properties.

However, extending the term of an interest only mortgage on a buy to let property can also be difficult, as some lenders may not allow it while the property is occupied by a tenant. This makes it challenging to address the issue of paying back the lump sum.

In such cases, it may be a better option to remortgage your property and replace your interest-only mortgage with a repayment mortgage. This would allow you to pay back a combination of both capital and interest, making it easier to manage your mortgage repayments.

It is important to note that these are complex circumstances, and it is highly recommended that you speak to an expert member of our remortgage advice team before making any decisions. They can help you better understand your options and find the best solution for your individual circumstances.

What if I want to reduce my term instead?

A viable option to consider during the remortgage process is to reduce the term of your mortgage. This option can be applied to almost all mortgage situations and is opposite to extending the term.

Reducing the term would allow you to pay back less overall, but this would also result in higher monthly mortgage payments. It’s important to note that this option may not be feasible for everyone, as larger monthly payments may not be affordable.

To make an informed decision, it’s recommended to seek remortgage advice in Leicester from a remortgage expert who can guide you through the process and provide insights on the best option for your financial situation.

Alternatives to Extending Your Term

If you’re looking to reduce your monthly outgoings, downsizing may be a viable option to consider, rather than extending your term through remortgaging.

This involves selling your current home and moving into a smaller property, which typically costs less, resulting in a smaller mortgage and lower monthly payments.

Another option to consider if you’re over 55 and own a property worth at least £70,000 is equity release. This enables you to release tax-free funds from your home through a lifetime mortgage, either in a lump sum or through occasional payments.

However, equity release may not always be the best option, and alternatives such as “RIOs” and “TIOs” – retirement interest-only mortgages and term interest-only mortgages – may be more suitable for over 50’s.

With a RIO or TIO, the loan is only repaid when you pass away or move into long-term care, and your home is sold. To navigate the complex landscape of later life mortgage options, it’s best to seek advice from a qualified, honest later life mortgage advisor.

They can help you understand the pros and cons of each option and advise on the most suitable path for your future plans and financial goals.

To understand the features and risks of equity release and lifetime mortgages, ask for a personalised illustration.

A lifetime mortgage may impact the value of your estate and it could affect your entitlement to current and future means tested benefits. The loan plus accrued interest will repayable upon death or moving into long term care.

Date Last Edited: December 6, 2023