Extending your mortgage is just one way of potentially lowering your monthly repayments - but is it the right thing for you to do? Mortgage costs have skyrocketed over the last two years due to rising interest rates. Millions of mortgage borrowers will continue to face a financial shock over the coming years as they continue to drop off cheap fixed-rate deals. It is estimated that 1.
6 million households will be remortgaging this year from deals which were lower than 2%. With mortgage rates at an all-time high, it comes as no surprise that people are looking for ways to manage costs better and one option people have is to extend their mortgage terms. Traditionally, mortgages in the UK have a term of 25 years, however over the last five years there was a rise of 117% opting for longer terms such as 35 years according to research from Money Super Market.
Extending your mortgage term means adding to the number of years that you were originally intending to pay back your loan which can make your monthly payments go down. However, Pete Mugleston, MD and mortgage expert at Online Mortgage Advisor says this decision should not be taken lightly. Here Pete highlights both the pros and the cons of extending your mortgage.
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