Asset Rich, Cash Poor. How do we pay off our mortgages?

Posted on 3 January 2013 by Teresa Sawyer


Asset Rich, Cash Poor. How do we pay off our mortgages?

My husband and I are both 63. We own 9 houses, 3 mortgaged and the rest owned outright. We are feeling asset rich but cash poor. We have to pay those mortgages off in 5 years time. Can you see a good way forward for us?

Teresa,

Without knowing the rest of your situation it is very difficult to give any exact guidance. However there a number of options that would be worth discussing including:-

  • Selling one or more of the unencumbered properties in 5 years time
  • Changing part or all of the 3 mortgages into repayment ones
  • Using surplus rental income (I've assumed, that some or all of the properties are rented out) to make overpayments on the mortgages
  • Re-finance the loans to a lender who will allow a longer term to give you more time to pay them off

I do think that it's worth having an initial discussion with one of our consultants to explore your options more fully. If you woould like to do so, please let me know and I'll arrange a suitable time for one of them to contact you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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