Mortgage issue

jodrell

I have - with my married daughter (39) - an interest only mortgage due to end March next year. Repayments on the outstanding £89,000 on the property valued for probate purposes on my wife's death almost two years ago at £700,000 are met without difficulty from our joint incomes, self-employed earnings (daughter) and my pensions. However the bank with whom we have the mortgage expect full payment of the outstanding £89,000 next year. It was the original intention when my wife was alive to sell the property as our "pension fund" and move on. We have requested an extension of the mortgage of some six years because of the changed circumstances, ie my wife's death and the present credit crunch, and although the bank has not rejected this outright, in the current climate I feel it might well refuse, if only for the reason that my daughter is self employed and I am of pension age. My daughter and her husband also jointly own a property (value £250,000) which is let until a covenant issue is resolved and it can be sold. Can anyone suggest a way of remortgaging in this odd situation, please, in the event of the bank demanding repayment ?

RichOneday_2

There are plenty mortgage advisors around, but probably in bed, so bump this up tomorrow evening is probably the best move.

On my limited knowledge of the mortgage market I wouldn't think you'd have a problem with this. As a 12-13% LTV mortgage this is about as low risk as mortgages get, even if you had to go somewhere else on a 'non-status' mortgage so that incomes were irrelevant.

I think your current lender will come up with a solution, but will find a way of levying a chunky fee for the privilige. If they do, I'd argue to the nth degree because it wouldn't involve much work.

Jonbvn

I would also suggest that you post this on the mortgage board, rather than the MFW board, since most of the mortgage advisors hang out over there.

http://forums.moneysavingexpert.com/forumdisplay.html?f=15