Costs for extending mortgage by 10 years

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16 Oct 2011 00:00 by chicadeb Star rating. 32 posts Send private message

Hi,

I have a 25 year mortgage that has 15 years left on it.  I have been thinking of extending it by 10 years to lower the monthly mortgage payments.

Has anyone done this?  Any idea of the costs and paperwork involved?

THANKS





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16 Oct 2011 01:17 by bobaol Star rating. 1931 posts Send private message

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 Is it a UK mortgage or a Spanish mortgage?  If Spanish, the renogotation fees are quite expensive.

 





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16 Oct 2011 23:23 by EOS Team Star rating in In Spain of course!. 4354 posts Send private message

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The problem in Spain is that your mortgage terms are written into the property deeds "escritura", so it can be expensive to change this.

However, saying that, we got our mortgage changed to interest only and they didn't charge us anything or change the actual escritura. 

Best talk to your bank and see what they say.

Justin



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16 Oct 2011 23:33 by chicadeb Star rating. 32 posts Send private message

Thanks for your reply, Justin.

My long-term plan is to sell it, but as it’s such as bad time to sell now (I have reduced it €75,000 and still have no interested buyers) I’m considering renting it for a few more years.  The rent won’t cover the mortgage and therefore I wondered if it was worth looking into extending the mortgage to reduce it so the rent would cover it totally per month.  I thought this could be a better option than selling it at a loss, however, your comments about an interest only mortgage sounds even more suitable (and possibly cheaper)!

I'll definitely look into it!

Just one question, did your bank change your mortgage to interest only for the rest of the mortgage term or just for a number of specified years?

Thank you





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17 Oct 2011 09:15 by johnzx Star rating in Spain. 3376 posts Send private message

Chicadeb

Sorry I have not read the whole post, so this may have been covered.

 

Why not ask the mortgage provider what you can do and what it will cost ?  At a time when the banks do not want any more property on their books they may be very helpful  !!

 



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17 Oct 2011 10:08 by EOS Team Star rating in In Spain of course!. 4354 posts Send private message

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I got it changed to two years interest free.  I think they possibly would have accepted a longer period but that was all I asked for.

And ask I had to!  They didn't offer anything so this is truly a "if you don't ask you don't get" type of scenario.

Best of luck with it.

Justin



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Schools in Spain Guide | The Expat Files | Learn Spanish | Earn a living in Spain




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17 Oct 2011 11:12 by Faro Star rating in London. 1156 posts Send private message

varies from bank to bank and depends to some extent on mortgage deed.

Drop in and discuss with manager and see what they come with ....





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17 Oct 2011 18:13 by chicadeb Star rating. 32 posts Send private message

Thanks for your comments everyone.

I'll pop in to see my bank.  They haven't been helpful in the past so that's why I wanted to know if others have done it so I can go in and mention this and have a bit more backup.

Cheers

 





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18 Oct 2011 12:44 by mariadecastro Star rating in Algeciras (Cadiz). 8091 posts Send private message

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 Expenses related to enlarging the repayment period of your mortgage are as follows:


    • Notary: 150 €

    • Registrar: 50 €

  • Gestoría: 100 - 150 €



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