Santander and Alliance & Leicester mortgage customers
Before agreeing to extend the term on your existing Santander or Alliance & Leicester mortgage we will review your circumstances. This review will be booked in and may take up to 1.5-hours.
Details of your income and expenditure will be taken during a telephone review and we may require evidence to support the application - any discrepancy between documentation provided and that given during review will delay progress. The result of this review may be that your term extension is not agreed.
You will therefore need to complete the budget planner and have to hand the documents listed in the budget planner, at the time of your review.
In order to arrange the review, please call 0845 600 3530 our lines are open from 8am to 7pm Monday to Friday, and 9am to 2pm Saturday.
Please note, it may take up to 3-weeks to change the term on your mortgage once it's been agreed.
Implications of extending the term of your mortgage
Prior to proceeding we want you to be aware of the implications of extending the term on your existing mortgage:-
Your debt will be secured on your property for a longer period of time, therefore your property is at risk for longer;
The total amount of interest you will pay will be higher as your mortgage will be over the longer term you are requesting;
Allowing your mortgage to be outstanding towards or into your retirement increases the risk of unexpected events affecting your ability to pay it;
Equity in your property can act as a buffer if your house price falls and is likely to build more slowly when your mortgage is over a longer term;
A longer mortgage term is more likely to be subject to adverse economic cycles e.g. (for interest-only mortgages) investments may fall in value; property value may decrease; unemployment may increase;
You must consider the implications on any protection products you hold that are linked to your mortgage, for example - the term of your life cover, mortgage payment protection insurance etc. and check if they are still going to be suitable;
It is prudent to review your mortgage regularly with a view to reducing the term should changes in your circumstances make this affordable for you in the future, however any future changes you may request will be subject to our lending policy at that time and therefore there's no guarantee you will be able to revert back to your original term.