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    • plasticcheese
    • By plasticcheese 13th Oct 16, 4:34 PM
    • 30Posts
    • 14Thanks
    End of term, what happens?
    • #1
    • 13th Oct 16, 4:34 PM
    End of term, what happens? 13th Oct 16 at 4:34 PM
    We are 2 years away from the interest-only part of our mortgage coming to an end (the rest is on repayment) and have no endowment in place to cover it. We aren't too worried about paying it off eventually as dh part-owns another property and that will cover it when he inherits. Will the bank (RBS) just let us carry on paying the interest until we can pay the lump off, or will they make us switch it to repayment? Many thanks.
Page 1
    • Thrugelmir
    • By Thrugelmir 13th Oct 16, 4:39 PM
    • 55,161 Posts
    • 48,363 Thanks
    • #2
    • 13th Oct 16, 4:39 PM
    • #2
    • 13th Oct 16, 4:39 PM
    At the end of the mortgage term the lender will expect you to settle the debt. That's the contract you entered into. As you would be in breach of contract any terms offered are at the lenders discretion.

    Suggest you contact the lender straight away and ask what options are available to you. Extending the mortgage term and switching to repayment seems the most logical. You can then repay the debt owing when the inheritance finally comes through.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
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