Interest only Mortgage ?

brassless

Hi ,
When my income diminished to half 7 yrs ago I switched to an interest only Mortgage Deal with £20,000 remaining on the Loan which is due in 2 1/2 yrs time .

I retired 2 yrs ago and live on Pension Credit supplemented by a token income of £50 per week .

We have no savings or any means to repay the loan once due and we don`t want to lose our Home which is our children`s only inheritance .

Any advice would be welcome .

dunstonh

Move house and downsize or look at moving to a cheaper area or look at equity release.

we don`t want to lose our Home which is our children`s only inheritance .

The money needs to be repaid somehow. The only difference is whether it is now or later.

kingstreet

It's your home, your shelter. Stop thinking of it as your kids' inheritance.

Think about downsizing or equity release which (in the latter case) may help you increase your income to give you a better quality of life.

Plans_all_plans

How much is the house worth? If your kids are that bothered about an inheritance they'll offer to pay for the shortfall for their long term gain! If they don't do this, or can't afford it, then that's just life.

originalmiscellany

Tell the kids! Tell them this is the situation, you either move or they take the mortgage on, and that's part of their inheritance.
If you're happy there for say the next 10 years, then explain the situation with them, and see what they can do to support you. Sorry you're in a pickle, but appears to be of your own making, with you not having addressed it seven years ago when you had the option to, or even earlier when you realised the large shortfall in the mortgage repayment vehicle you had.

brassless

The House is worth £100.000 approx , and the Kids due to renting their own homes will not be able to afford to borrow the outstanding deficit remaining ,I have already asked .

When my business income declined there was no way of setting aside money to cover the debt when it arrives .

Equity release sounds like an option , who are the best companies to approach with regard to this ?

hcb42

£20 K for the kid(s), is quite a small loan -( more if you have 3 or 4 of them..!) Perhaps investigate the equity release and then discuss it with them again...

Conrad

brassless wrote: »

Equity release sounds like an option , who are the best companies to approach with regard to this ?

Aviva are quite reliable and secure.