Mortage final payment.

jespurrier

My wife and I are currently renting our house from her parents who are now panicking because the mortage ends in a month and there is a £14000 final fee to be paid on it.

Basically the family can only afford to pay £7000 of this at the moment.

Can anybody offer any advice as to what would be our best strategy at this point?

I have suggested remortgaging and this was met with fear!

Thank you in advance. :-)

Julian.

Thrugelmir

Reduce the amount owed and extend the mortgage term.

GMS

Remortgaging may be an option.

Is there an option for you to purchase the property from them? If so you may be able to do so without raising a deposit if they are happy with a 'gifted deposit' where they would give away equity.

Speak to a broker to see the options.

jespurrier

Thank you.

Could you recommend a good independent mortage broker in London by any chance?

HappyMJ

It won't be worth remortgaging £7,000. It'll be cheaper getting a personal loan or whacking it on a interest free credit card. So just continue with the current mortgage for a few more years. Most providers don't mind as long as they get their money one day. If you didn't make the final repayment in full not much happens. You continue to make payments until the debt is paid off.

jespurrier

HappyMJ wrote: »

It won't be worth remortgaging £7,000. It'll be cheaper getting a personal loan or whacking it on a interest free credit card. So just continue with the current mortgage for a few more years. Most providers don't mind as long as they get their money one day. If you didn't make the final repayment in full not much happens. You continue to make payments until the debt is paid off.

Thank you.

I dont think a personal loan or credit card is an option for us.

So you are saying that if we cant make the full payment and there is £7000 left over. The mortage company will just allow us more time to pay that off? Is there a some sort of financial penalty for this?

Thrugelmir

jespurrier wrote: »

So you are saying that if we cant make the full payment and there is £7000 left over. The mortage company will just allow us more time to pay that off? Is there a some sort of financial penalty for this?

You will need to speak to your lender and ascertain the options available to extend the term of the mortgage.