An increased duration is used in combination with a lower annual payment: this can suit a borrower whose income-expenditure situation has deteriorated but has enough working lifetime left to pay off the full outstanding debt with interest over a longer period. Back-loading is suitable where the income position of the borrower has deteriorated but there is a reasonable chance of future recovery.
Most loan modifications in Ireland, such as temporary moves to interest only, term extensions, or arrears capitalisation can be assessed as combinations of these two.