More people are extending mortgages, says research

By Jonathan Dawes, Mon 14 Jul 2008 - Published in Mortgages

Increasing numbers of homeowners are extending their mortgage life in order to help reduce payments, according to new research.

Mortgage broker John Charcoal found that between ten and 15 per cent of people who took out a remortgage on their house in the past two months included a longer life option.

Ray Boulger, a senior technical expert at John Charcol, said: "The key thing is that a homeowner who needs to remortgage must feel they can afford the higher payments."

He added that if they cannot, a better solution might be for them to switch to an interest-only deal or extend their current mortgage.

David Hollingworth, a mortgage expert with brokers London and Country, said the move to include a longer life option in a remortgage should be considered only as a last resort.

In other news, the online conveyancing firm Convex.net said the decision of the Bank of England's monetary policy committee to keep interest rates at five per cent would not help first time buyers.

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