Loan to pay off mortgage.

Tbeef

My dads mortgage is due to end this year and then he has a £6k - £7k final payment to make on a house valued at £105k. He is 63 and in full employment. Where would be the best place to go for a loan for such??

andys15

surely another mortgage

no_more_cards_for_me

How can the mortgage finish and he still have an outstanding payment ?

Tbeef

Because he had an endowment which fell short.

slummymummyof3

Can't he extend the term of the mortgage - surely that would be cheaper than a loan?

Wutang_2

change it to a repayment mortgage!

no_more_cards_for_me

Tbeef wrote: »

Because he had an endowment which fell short.

Switch to a repayment mortgage or just extend for another 2 years.

Tbeef

Thank you all.. Ill call them now.

Tbeef

They have said they arent in a position to do these at the moment and to refer to a bank for a loan.

Tixy

In theory it should be easier to get a secured loan such as a mortgage rather than unsecured to cover this amount.
What mortgage company is it? What is his credit rating like?

How long does he intend to work? can he afford to repay the whole amount before he turns 65?
Does he have personal pension or work pension that will pay a lump sum on retirement which could cover this shortfall?

Tbeef

He can afford to pay it over the 2 years easily in a loan because he has no other debt at all. He does have an empty credit card with 12k he can use but that would be silly due to the interest rates. He will defo work till it is paid off and could probably pay it off a bit sooner if needs be.

The mortgage company was the Pru but they are now under PI which is run by EGG.