Nram interest only mortgage 450k f&f settlement offer help.
johnboy121
Posts: 3 Newbie
Hello,
I have an interest only mortgage which is coming to an end. I owe £450k but can only afford to clear 380/400k. Do you think they would accept a settlement at this figure? I am not in arrears.
Thank you
I have an interest only mortgage which is coming to an end. I owe £450k but can only afford to clear 380/400k. Do you think they would accept a settlement at this figure? I am not in arrears.
Thank you
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Comments
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I've never heard of an F&F for a mortgage. I would have thought you'd have to remortgage for the money you'd still owe however I could be wrong!0
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Agree with ^^^^ they might IF you were in arrears, but the solution seems to be remortgage0
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I very much doubt that you would be allowed to do this .
If you were mis sold a product, then that may be different. I know its been in the news over the last couple of years , regarding shortfalls of interest only mortgages. Did you not get any leaflets sent to you from your mortgage company warning you of the pitfalls ?
Also , how old are you ? Are you still working , or retired etc?
If you have a lump sum to pay, when you remortgage the payment should be significally cheaper.0 -
Hi Thank you for the replies.
It would be harder for me to now get a mortgage because I am over 60. I just thought I may of been able to offer the amount I have as it would clear a large chunk of the money owed.
I have not had any leaflets about shortfalls or anything I will take a look online today.
Thank you0 -
Usually offers are only accepted on old, long defaulted debts.
Certainly not on a Live mortgage, unless there are certain special circumstances, and even then it would be at the creditors sole discretion as to whether they would accept or not.
You are 100% liable for the full outstanding amount owed, and they would chase you for the shortfall, if you didn't continue with payments.
Bit different when its your home involved.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
The reason that companies will accept discounted settlement offers on credit card debts is that the debt is unsecured; that is, the companies know that if they don't accept that lump sum, they probably won't get anything else from you.
A mortgage is a secured debt. If you can't pay it off, they can force the sale of the property and recover their loan that way. They have no incentive to accept less than they've loaned you.
If you can't remortgage for the difference (and you may be able to: obviously at 60 they won't grant you a 25 year term, but if the mortgage is only 50k you might be able to do it on a 5 year term?) the solution would be to sell the home and buy something smaller or in a cheaper area with the equity - which, if your equity is 400k+, gives you a lot of options.MFW diary here. 1 Feb 2017 $229,371 - MFD Feb 2043 :eek: aiming for May 2028
14 August 2017 - Refinanced: $220,000
January 2019 $211,580 Current MFD 31 June 20360
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