Interest only mortgage ending - need advice please

staro30

Hello,

My in-laws interest only mortgage is coming to end this summer. The figure is 61,750. One is 59 in full time work and the other is 65 looking to go part time due to ill health. They plan to sell their house and their parent's house (paid for). They will then downsize slightly and use the extra money to become mortgage free. This does not look like it will happen before their current mortgage ends but may well come to fruitition next year! What advice can I give them?

Thanks
Staro

Dan_1976

The lender may extend the term. Normally the lender will write and offer this as they are aware of the amount of people have endownment and investment linked product issues. Or have made the wrong choice.

However this wont be forever so they need to get it sorted.

Pee

I would have thought the additional asset in the other house - I presume this is now in their names - would also be reassuring to the mortgage company. I would do it before the older party goes part time, too.

Dan_1976

The other house would have to be in the in-laws name/estate before it would help them. I dont think it will be an issue though.

staro30

I didn't think it would be a problem either. However, the interest only mortgage is with B&B. My mother in law visited her local branch to inform them of their plans and negotiate an extension. She was told that she could not speak with anyone but could call Santandar. She did this and explained her position as per previous posts and asked for a 6 month/1 year extension. They refused to listen and expect settlement in 2 months time. Bit stressful!

Can anyone offer any further advice/help? I expect she just needs to take the details of their postion and plan to another lender?

Thanks
Staro

unite79

Nice to see Santander being so helpful, in these tough times (not) - Indeed your mother in law needs to find a new provider - Given her age amd husbands this wil not be overly easy to source, however there are lenders out there who can help!

staro30

Any tips on the likely providers? She may well traipse off to the banks and building societies on Sat am but are there any good online sources/phone numbers? Are brokers worth a try?

Thanks for your help

Staro

Gorgeous_George

You could try Britannia. I know when I remortgaged in 2003 they had no upper age limit (unlike the OneAccount who refused to go beyond 65 even though the main earner would only be 52 when the term ended and the borrowing was 3 x one income with an LTV of 60%).

I like Britannia.

GG

unite79

Id be seeig a whole of market broker, the suns far to hot to be tripsing round banks at the weekend in my humbe opinion!