interest only mortgage time bomb

josephine11

Would anyone know if, and how my parents could extend the repayment terms on their mortgage as the property value has fallen and the bank is looking to know how the capital will be repaid at the end of the term in february 2013? A five year increase should be enough but they will be 63 and 65 years old by then so I don't even know if you can have a mortgage beyond this. Thanks

Thrugelmir

Start making capital repayments on the mortgage.

They'll have to sell the property to repay the mortgage in any event.

Premier_2

josephine11 wrote: »

Would anyone know if, and how my parents could extend the repayment terms on their mortgage as the property value has fallen and the bank is looking to know how the capital will be repaid at the end of the term in february 2013? A five year increase should be enough but they will be 63 and 65 years old by then so I don't even know if you can have a mortgage beyond this. Thanks

When did they buy the property? :huh:

Mortgages are typically granted for 25 years (but perhaps less if they reach pensionable age before then) so if it expires in 2013 then does that mean they originally purchased in 1988? :huh:

How would extending the period on an interest free mortgage help? :huh:
(They will still have to repay the capital borrowed at some time, and if they retire their current imcome will probably reduce)

When they reach pensionable age, they may be able to take 25% of their pension pot in cash. Would that be sufficient to repay the capital borrowed?