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    • Smokeyone
    • By Smokeyone 7th Dec 17, 9:51 AM
    • 146Posts
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    Smokeyone
    advice wanted on mortgage/property sale
    • #1
    • 7th Dec 17, 9:51 AM
    advice wanted on mortgage/property sale 7th Dec 17 at 9:51 AM
    Hello

    My property is up for sale with a number of enquiries - however my interest only mortgage ends in a couple of months and the bank says it will not extend my mortgage date. Long story about paying off the mortgage endowments etc etc

    Do I find a bridging loan somewhere or is there a better plan -

    I do not need another mortgage (new plans) and the property mortgage is around 70% of its value - I just need to sell this property and pay off the mortgage but cannot see selling the property and completion all within two months.

    Hoping for some ideas please
    Thanks
    Last edited by Smokeyone; 07-12-2017 at 9:54 AM. Reason: update
Page 1
    • hazyjo
    • By hazyjo 7th Dec 17, 10:04 AM
    • 9,843 Posts
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    hazyjo
    • #2
    • 7th Dec 17, 10:04 AM
    • #2
    • 7th Dec 17, 10:04 AM
    Is it just me (it's early) or is anyone else confused?


    Are you looking to own the next house without a mortgage, and the term of your current one finishes in two months so you need to pay off the interest? How much is it for? Did you not have anything at all in place to pay off the interest? How did they let you take it out without some sort of plan to pay it off? I may be barking up the wrong tree - not entirely sure I've understood your post.


    I certainly wouldn't want to risk a bridging loan indefinitely! I've taken a year to buy before (a couple of times) when transactions have fallen through and I've had to start again.


    Could you auction your current one? Would prob sell at a much lower price though.
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation; Flybe flight
    • Mutton Geoff
    • By Mutton Geoff 7th Dec 17, 10:17 AM
    • 999 Posts
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    Mutton Geoff
    • #3
    • 7th Dec 17, 10:17 AM
    • #3
    • 7th Dec 17, 10:17 AM
    I'd stick with your own bank but you need to push further up the chain. They certainly have the ability to extend your mortgage for possibly one or two years since their only other option is to evict you and force a sale which they will not want to do lightly.


    If you are marketing the property then you have documented proof you are taking action to do something about it.


    People's circumstances change all the time, the bank should be sympathetic to this. I extended a fixed rate interest only loan with Barclays/Woolwich for two years (two agreements of 12 months each) before new rates fell to what I was already paying then I remortgaged. I was not charged anything for the extensions and just paid the normal interest payments.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Smokeyone
    • By Smokeyone 7th Dec 17, 10:37 AM
    • 146 Posts
    • 16 Thanks
    Smokeyone
    • #4
    • 7th Dec 17, 10:37 AM
    • #4
    • 7th Dec 17, 10:37 AM
    Thank you all for your replies - sorry if I missed a few important points -

    Good idea about pushing further up the banking chain - my only contact so far has been with the usual telephone person.

    I did have a plan to pay off the mortgage but the finances went pear shaped (I do have a chunk of money in place but nowhere near enough) - I do not have a problem paying the interest only mortgage while a completion goes through when its sold - if it took six months it would still be okay. New plans involve an existing family home - no mortgage involved or needed -
    The estate agent has already telephoned today with another viewing and I am considering one offer so am optimistic here will be a sale soon...but completion in two months !!
    • Cheeky_Monkey
    • By Cheeky_Monkey 7th Dec 17, 10:49 AM
    • 1,432 Posts
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    Cheeky_Monkey
    • #5
    • 7th Dec 17, 10:49 AM
    • #5
    • 7th Dec 17, 10:49 AM
    You asked this same question back in January so you have had plenty of time to sort it out.

    As has been suggested though, the bank is not going to start eviction proceedings if you have a sale going through.

    It might have been worth offering your tenants a cash incentive to leave early so you could get it ready for sale but, admittedly, hindsight is a wonderful thing
    I used to be indecisive - now I'm not so sure
    • Smokeyone
    • By Smokeyone 7th Dec 17, 1:04 PM
    • 146 Posts
    • 16 Thanks
    Smokeyone
    • #6
    • 7th Dec 17, 1:04 PM
    • #6
    • 7th Dec 17, 1:04 PM
    Hindsight is a wonderful thing - true - and thank you for your advice - I'll keep on at the bank -
    • Cheeky_Monkey
    • By Cheeky_Monkey 7th Dec 17, 1:33 PM
    • 1,432 Posts
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    Cheeky_Monkey
    • #7
    • 7th Dec 17, 1:33 PM
    • #7
    • 7th Dec 17, 1:33 PM
    Hindsight is a wonderful thing - true - and thank you for your advice - I'll keep on at the bank -
    Originally posted by Smokeyone
    I wouldn't even do that. I'd be more inclined to wait for them to contact you about it nearer the time and, when they do, you can hopefully say that you have a buyer and your sale is progressing which, I'm pretty sure will hold them off.
    I used to be indecisive - now I'm not so sure
    • Bossypants
    • By Bossypants 7th Dec 17, 1:54 PM
    • 528 Posts
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    Bossypants
    • #8
    • 7th Dec 17, 1:54 PM
    • #8
    • 7th Dec 17, 1:54 PM
    I wouldn't even do that. I'd be more inclined to wait for them to contact you about it nearer the time and, when they do, you can hopefully say that you have a buyer and your sale is progressing which, I'm pretty sure will hold them off.
    Originally posted by Cheeky_Monkey
    Exactly. The bank is all about saving their own money, so they are hardly going to throw resources at the long and time-consuming process of repossession when all they are going to do is try to sell it to recoup their money, which you are currently trying to do for free anyway.

    Obviously there's no guarantee, but assuming that you are currently making every effort to sell and can prove it, I would be very surprised if they didn't just let you get on with it.
    • Smokeyone
    • By Smokeyone 7th Dec 17, 2:58 PM
    • 146 Posts
    • 16 Thanks
    Smokeyone
    • #9
    • 7th Dec 17, 2:58 PM
    • #9
    • 7th Dec 17, 2:58 PM
    So the advice is not to chase the bank and ask about talking to someone who can make decisions !
    • Mutton Geoff
    • By Mutton Geoff 7th Dec 17, 3:32 PM
    • 999 Posts
    • 1,042 Thanks
    Mutton Geoff
    So the advice is not to chase the bank and ask about talking to someone who can make decisions !
    Originally posted by Smokeyone
    Personally I wouldn't do this since you might end up in default, converted to standard rates or anything. I would definitely be proactive in getting the bank to send you their "term extension form".


    Doing nothing might have a worse outcome.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Thrugelmir
    • By Thrugelmir 7th Dec 17, 3:38 PM
    • 56,257 Posts
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    Thrugelmir
    I do have a chunk of money in place but nowhere near enough
    Originally posted by Smokeyone
    Reducing the debt owed may aid your cause somewhat. As this at least shows intent. Which may encourage your lender to consider offering an extension.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Smokeyone
    • By Smokeyone 7th Dec 17, 8:28 PM
    • 146 Posts
    • 16 Thanks
    Smokeyone
    I could offer to reduce the outstanding amount by about 10% !
    • Thrugelmir
    • By Thrugelmir 7th Dec 17, 10:48 PM
    • 56,257 Posts
    • 49,626 Thanks
    Thrugelmir
    I could offer to reduce the outstanding amount by about 10% !
    Originally posted by Smokeyone
    Hardly a chunk. More of a sliver.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Smokeyone
    • By Smokeyone 8th Dec 17, 8:32 AM
    • 146 Posts
    • 16 Thanks
    Smokeyone
    Could probably go to more if needed but to me it's a chunk ...
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