Abbey Mortgage

iby121

Hi I was wondering if you kind people could help me with a situation I have, my father took out a mortage over 20 years ago with national and provincial. The mortage is interest only and we have been paying interest off during all this time. I have come to learn that I can change the mortage to a capital repayment mortage will this be easy to do and what will be the minimum repayment.

Also as the mortage was taken so long ago is it worth while checking to see if it may have been misold etc.

Thanks.

opinions4u

my father took out a mortage over 20 years ago with national and provincial. The mortage is interest only and we have been paying interest off during all this time. I have come to learn that I can change the mortage to a capital repayment mortage will this be easy to do and what will be the minimum repayment.

How much does he owe? What's the rate? How long does he intend to repay the balance over?

£30,000 over 5 years at 4.24% would cost £565 per month according to this calculator.

Over 15 years it would be £229 a month for £30k.

Also as the mortage was taken so long ago is it worth while checking to see if it may have been misold etc.

No. Mortgages weren't regulated 20 years ago. Was/is there an endowment policy linked to the mortgage?

iby121

opinions4u wrote: »

How much does he owe? What's the rate? How long does he intend to repay the balance over?

Hi the mortage was taken out for 25 years and was at a value of £21, 000 the mortage expires in a couple of years , I dont know what to do and am so confused are we allowed to change it to a capital repayment mortage and pay off the actual mortage rather than just paying interest.

Thanks for your help.!

opinions4u

Hi the mortage was taken out for 25 years and was at a value of £21, 000 the mortage expires in a couple of years , I dont know what to do and am so confused are we allowed to change it to a capital repayment mortage and pay off the actual mortage rather than just paying interest.

Thanks for replying.

He really needs to talk to the Abbey about his options. Yes, he should be able to change to a capital repayment mortgage. The problem is that he's going to have to work out what he can afford to pay over what term.

There's no point setting up a payment that he can't afford and, equally, there's little point extending the term past retirement age if his income will drop significantly at that point.

Another option would be to sell up and move to a cheaper house with no mortgage!