RSS FeedsHomeowners extend the life mortgages to help less burden monthly payments
17/07/2008
There are an increasing number of homeowners who are extending the life of their mortgages. More and more homeowners are resorting to doing this in order to ease monthly mortgage payments as the economy continues to struggle.
According to the new figures, as many as ten to fifteen per-cent of homeowners have increased the life of their mortgage in order to help lessen the financial burden. Homeowners can save a substantial amount of money each month by increasing the mortgage term and the longer the term generally, the lower the amount of the monthly payment.
Homeowners are having to go to such measures in order to help with finances as the cost of living seems to be constantly increasing. Another option which is also becoming popular is to change to an interest only mortgage which again helps reduce monthly payments.
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. If they cannot, it is much better to either extend their mortgage or switch to an interest-only deal. These are much better options than the alternative which is to struggle with their mortgage."