Posted on 6 July 2012 by Sarah
We have an interest only mortgage with 6 years left to run. My partner is 63 and I am 48. We cannot get another mortgage on my earnings alone, and the bank will not extend further. We owe £152,000 on value of £250,000. I can afford the interest only payments no problem, and have tried to sell to downsize. (no luck) Ironically with the amount we would need on a repayment basis, the monthly payments are the same on the value of a property of only half (125k). Do we have any other options? We have excellent credit rating and we have never defaulted in 20 yrs. Do lifetime mortgages still exist?
Whilst your own bank will not extend the term of your mortgage there are still other banks who would let you take a mortgage to age 75 and a few who will lend beyond this point. They will all want you to be able to demonstrate the loan is affordable and so long as your combined incomes are sufficient once your partner retires you may be able to secure a remortgage.
The choice of lenders will be further reduced because you are relying on selling your property to repay the mortgage debt and do not have another repayment vehicle in place. Unfortunately you do not have sufficient equity to meet the majority of these lender's requirements and so I think it will be very difficult to pin down a lender to help you.
Lifetime mortgages do still exist, but the minimum age for these is currently 55 which falls just outside of your timescales.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.
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