If you’re looking to amend your mortgage term, there’s a few things you need to know first. Here are some of your most frequently asked questions about mortgage term extensions.
Am I eligible to extend my mortgage term without taking financial advice?
You must take financial advice if you’re already in retirement, or if the new mortgage term takes you into retirement. A financial advisor will be able to talk you through your options in detail and apply on your behalf
If you don’t have a financial advisor, Unbiased.co.uk is a good place to start your search.
Things you should be aware if you choose not to take advice
If we can process your request, it’s important you know the implications of proceeding on this basis:
- You won’t receive any advice and/or a personal recommendation from us or an independent financial adviser as to whether the change to your mortgage meets your needs.
- You won’t be able to refer a complaint about the suitability of this change to your mortgage to the Financial Ombudsman Service (FOS).
- You won’t be able to claim compensation through the Financial Services Compensation Scheme (FSCS) in relation to this change.
- You will still have the right to claim compensation from the Financial Services Compensation Scheme (FSCS) on other aspects of your mortgage.
Do I need a solicitor?
- We’ll only need solicitors to be involved if any further checks are required regarding the land of the property
- We’ll instruct our solicitors to act on our behalf at no additional cost to you. Our solicitors will carry out the checks and will need to be satisfied with all matters relating to the property.
Will I have to pay any fees?
- You’ll need to pay our administration costs of extending the mortgage term if this is agreed. You can find those fees in our Tariff of Charges document
- We’ll need a valuation of your property if your repayment strategy is the sale of your property. You may need to pay a fee for this depending on the property purchase price/value
- If the property value is below £1m the valuation is free, if it’s over £1m a fee will apply
- If you need to take financial advice, you may need to pay your financial advisor for the cost of providing the advice
- Please see our tariff of fees and charges below.
How long does the process take?
- Once we receive the application form, it takes around two months to extend the mortgage term. This depends on how quickly we receive an updated valuation of your property if one is required.
- We may also ask your financial advisor for information so we can assess your ability to repay the loan based on the new term.
You or your financial advisor will need to send us a completed application form to [email protected]
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE