Mortgage advice for retiring parents

randonaaf

I'd be really grateful for any thoughts or advice on the situation my parents are in.

Their mortgage - a One Account - ends in Jan 2012 and will have a balance of around £60k to pay off. They have 2 endowments maturing between now and January but they are likely to be around £25k short of being able to clear the mortgage. My Dad's due to retire in September and due to illness will probably be unable to work beyond then even if he wanted to.

So I'm trying to figure out the best way for them to cover the shortfall on their mortgage come January - by which time they will only be on relatively modest pension income.

Their house is probably worth circa £400k and they could move and downsize which I think is the only sensible option in the longer term, but they really need to buy some time because my Dad's health situation means moving between now and January will be virtually impossible.

I will of course suggest they speak to the One Account, but in the meantime does anyone have experience of mortgage companies in general or One Account in particular with regards the view they are likely to take about possibly extending the mortgage deadline/going interest only on the £25k for a period of time, pending the future sale of the house etc? Or would it be best to look elsewhere for other forms of borrowing?

My Dad is currently off sick but still earning a salary from work, so if they need to look at loans separate from the mortgage company would it be best to apply for something before his income is reduced?

Thanks in advance for any thoughts or advice you may have.

Wh05apk

For £25k on a £400k property, I would not consider selling unless they wanted to downsize as fees will likle be £10k+ easily to sell/buy.

Depending on their age they should be able to get a remortgage to 75, possibly on an interest only basis, or ultimately could even look at equity release.