Interest Only Mortgages with no repayment vehicle

Posted on 12 February 2012 by alison


My partner (61) will be coming to the end of his mortgage and does not have an endowment. He is looking to to cover the mortgage for the next 2/3 years, how can he go about this ?

Alison

Your partner finds himself in a difficult position caused by not planning properly for the future.  What was his intention when he took the mortgage out and did he get financial advice at the time?

The options available to him include speaking to his current lender and asking for an extension of the mortgage term or remortgaging to another lender and taking a capital repayment mortgage over a longer term to keep the monthly costs down.  In both cases the lender will want to be sure that he can afford the monthly repayments now and in retirement and if his current lender agrees to extending the term they will want to know how he intends to repay the debt.

If it was his intention to sell the property and either downsize, so he did not need a mortgage or to move into rented accommodation these are still options to be considered.

I believe we can help him and that he would benefit from speaking to one of our independent mortgage advisers.  Please ask him to call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help him find the right solution for his situation.

Peter

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