Posted on 25 April 2013 by Pam
What happens when my interest only mortgage comes to an end?
When the term of your interest only mortgage comes to its end, the lender will expect the capital sum to be repaid, which is usually by the repayment vehicle that you have been paying into. Typically this would have been an endowment policy, stock and shares ISA or some other form of savings account.
If you don't have such a vehicle, then I would recommend that you speak to your lender as soon as possible to look at what your options are. These may include extending the term of your loan and moving it onto a repayment basis, or remortgaging to a new lender on interest only again, but this time paying into a repayment vehicle.
Once you've spoken to yoru lender and got an idea of where you stand with them, please let me know and we can talk through your case in more detail and decide the best way to procede.
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