My wife and I are both retired on reasonable pensions. We currently have a interest-only offset mortgage with First Direct, with a capital balance of £30k but equity in the mortgaged property in excess of £800k (plus a second home that is owned outright). This mortgage must be repaid by my 65th birthday in 15 months time. Our lender is happy to extend the term for a further 5 years (until my wife's 75th birthday) but only on a capital-repayment basis, but the repayments would reduce our monthly disposable income by more than £500. However, since we plan to down-size within the next 5 years, releasing equity more than sufficient to repay the mortgage balance as a lump sum, we would prefer not to reduce our monthly disposable income unnecessarily. Is there anyone out there willing to offer a modest interest-only mortgage over a 5-year term to someone with substantial equity beyond the age of 65, other than through an equity-release scheme?
It may well be possible to find the solution that you are looking for. As John Charcol is an Independent, Whole of Market broker, we have access to a diverse range of lenders, including those who still underwrite cases manually, meaning they can judge each case on its merit, rather than adopting the "computor says no" approach that we see so much of.
If you would like to discuss your options in more detail, then please let me know, and I'll arrange for you to speak to one of our consultants.
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