Can't pay off mortgage, don't want to move.

dmg24

Euphoria1z wrote: »

doesnt the government help in anyway to pay towards the interest of your mortgage if your unable to work due to health reasons?

You can claim SMI if unable to work due to health reasons. However this only covers the mortgage interest, not the capital. Also, the bank are pretty unlikely to extend the mortgage term if it is clear that the capital will never be paid off.

CLAPTON

how much is the mortgage for
how much is your income

ALIBOBSY

baggieaggie wrote: »

This sounds horribly depressing. Are there no specialist companies who buy properties and allow the original owners to stay in them as rent-paying tenants for the rest of their natural lives? If not, there's a niche in the market. If I was well, I'd set one up myself, lol!

There are companies who do buy and leaseback on houses, but you only have to google it to see the problems people have had with these companies. They gazunder at the last minute, even after making very low offers in the first place. They then hide in the agreement terms where they can up the rent suddenly and/or sell the property out from under the original owners after telling them they had a loan for life.

ali x

baggieaggie

beecher2 wrote: »

There's Equity Release but that's only possible if you have equity, and it sounds like you've none.

We put down a good deposit and the house has gone up in value, so equity is about £40,000 at present, and should be a lot more in 2017 when the mortgage term ends.

(By the way, we're not having difficulty paying the mortgage - we simply don't want to move at the end of the mortgage term.)

alfiesmum

As it's a 3 bed, any chance of renting out to a lodger?
As you had a good deposit, it will need doing over again now. Everything that you did to save that deposit, now save for the capital too. Would changing the mortgage to repayment help? Even out to payments, they might not seem so daunting then.

baggieaggie

beecher2 wrote: »

I think lenders have different age restrictions, but if the household income after retirement is adequate then they might allow further remortgages. The OP should probably get some financial advise or post details figures.

I wasn't aware that mortgages were available post-65 till I started this thread. Something else to consider, so thanks for making me aware.

baggieaggie

alfiesmum wrote: »

As it's a 3 bed, any chance of renting out to a lodger?
As you had a good deposit, it will need doing over again now. Everything that you did to save that deposit, now save for the capital too. Would changing the mortgage to repayment help? Even out to payments, they might not seem so daunting then.

We used OH's redundancy payment and proceeds from my flat sale. We have nothing to save, believe me. Belts are as tight as they will go!
Repayment mortgages are too expensive - that's why we were forced to go for interest-only.

baggieaggie

I've just googled Equity Release, and unless I'm missing something that's not really what we're looking for. I think buy-and-leaseback (as mentioned by alibobsy) is the sort of thing I was hoping existed, though it doesn't sound as if it's very well regulated!

ItMightBeUsefulOneDay

baggieaggie wrote: »

We used OH's redundancy payment and proceeds from my flat sale. We have nothing to save, believe me. Belts are as tight as they will go!
Repayment mortgages are too expensive - that's why we were forced to go for interest-only.

I don't mean to be harsh but all you're doing at the moment is renting it from the bank. Once that tenancy is up (2017) the bank will want their house back.

If you want to stay, choices are limited as you must clear the debt somehow - how much is left on the mortgage? If you could only afford interest only some 5 years ago when rates were much higher, surely you're making big inroads into the debt now that we're on 0.5%?

getmore4less

baggieaggie wrote: »

Absolutely, but at least we're not having to move every five minutes when a landlord wants to sell or move back in, which was what was happening before. Not good when you have health issues.
Also, no matter how long the mortgage term is, we'll never be able to pay it off, sadly. If we do have to leave, then selling sooner rather than later, before health deteriorates even further, is preferable.

That is the key.

I think I would investigate extending the mortgage anyway but start looking for a final retirement place plenty of time to ivestigate the options.
Probably a rental retirement bungalow/appartment(with lifts) not private owed so more secure tenancy.

Use the equity you do have to enjoy life while you can.

Seems a bit pontless having this £40k tied up and then when you have to sell not be well enough to enjoy it or have it all go on care(it will last less than a year).