Interest Only - End of Term

Posted on 19 November 2011 by Gerry


I have an interest only mortgage with a 5 year term left. My mortgage provider has sent me a declaration of intent form and requesting how I am going to pay the amount left when the mortgage ends therefore am I legally obliged to fill this form in as it seems they are applying bully boy tactics.My house has plenty of equity and it was my intent to downsize at the end of the term and pay off the mortgage I am 62 years and am working and intend to do so into my seventies I have always paid the mortgage and never defaulted. Any advice would gratefully appreciated.

Gerry

All Lenders have a duty of care towards their borrowers and part of this includes making sure that you have made provision for repaying your mortgage at the end of the mortgage term.  If it is your intention to downsize and repay your mortgage I fail to see why you should be concerned about completing the form and letting your Lender know this.  If however, it is not your intention then how do you propose to repay the mortgage in 5 years time?

I recommend that you speak to your local branch and discuss the options available to you, you never know you might be pleasantly surprised, before deciding whether to complete the form.

Peter

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