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Is there an alternative to Equity Release?

Posted on 9 November 2012 by Martin


I am aged 65 and drawing my state pension plus 3 other small pensions. I still work part-time as a self-employed debt counsellor. My wife is aged 60 and does not qualify for her state pension until she is 62.

We still have a mortgage of approximately £25000 on a repayment basis but need to raise about £35000 to clear this and some credit card debts. We wish to go to an interest only mortgage to reduce our outgoings with repayment coming from inheritances. Our credit history has always been good until recently when we have had to increase our credit card borrowings. We have always met our financial commitments apart from our current mortgage lender agreeing a short term arrangement for interest only payments.This arrangement ends in December.

We have considered equity release but this is expensive due to possible hefty early repayment charges.

Is there any lender out there who will consider a 10 year interest only mortgage of up to £35000?

Martin,

Depending on the rest of the details of your case, such as the value of your property, and the income both yourself and your wife receive, this may be something which we can assist you with. However before going any further I would reccomend that both of you obtain your credit files, so that we can get a completely accurate picture of what we're dealing with, prior to speaking to any lenders.

As John Charcal is an Independent, Whole of Market broker, we deal regularly with those lenders who still manually underwrite cases, and can look at each application on its merits.

If you would like to take your enquiry further, then once you have your credit file, please let me know and I'll put you in touch with one of our consultants, to see if we can help you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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