Unusual mortgage problem

kingstreet

Thrugelmir wrote: »

For borrowers it is the easy option to stretch matters out. In majority of cases will merely delay the envitable. Rather than making the tough difficult decisions now.

Possibly. In others it may mean the difference between having to take a massive loss on an unwanted property sale and/or life-changing mortgage arrears, when the solution to the problem was actually just around the corner.

I don't disagree with others' advice to downsize. I honestly believe that isn't an immediate solution, given the current timescale likely to be involved in selling. Put the property on the market, let them pay interest-only until the sale completes.

kingstreet

ViolaLass wrote: »

Would it be an option to change the length of the loan and get it over 10 years instead of the four left, for example?

£101k over 10 years at eg 5% = £1,090 per month

To get to the borrower's target of £500pm, the term would have to be 38 years.

GlynD

kingstreet wrote: »

£101k over 10 years at eg 5% = £1,090 per month

To get to the borrower's target of £500pm, the term would have to be 38 years.

I can remember an old bank manager saying to me some 30 years ago when I was quite young that he was shocked by the size of mortgages young people were having to take out. I didn't really understand what he meant until now. The thought of a £1,000+ mortgage per month scares the bejasus out of me.

Thrugelmir

kingstreet wrote: »

Possibly. In others it may mean the difference between having to take a massive loss on an unwanted property sale and/or life-changing mortgage arrears, when the solution to the problem was actually just around the corner.

I don't disagree with others' advice to downsize. I honestly believe that isn't an immediate solution, given the current timescale likely to be involved in selling. Put the property on the market, let them pay interest-only until the sale completes.

Don't disagree either. Merely putting a business hat on when making my comment.

I doubt HSBC want to incur the cost of micro managing mortgage accounts on any scale. There isn't the profit margin in the product to do so. Far easier to process through the system when the situation becomes real rather than full of what if's.

kingstreet

Thrugelmir wrote: »

Don't disagree either. Merely putting a business hat on when making my comment.

I doubt HSBC want to incur the cost of micro managing mortgage accounts on any scale. There isn't the profit margin in the product to do so. Far easier to process through the system when the situation becomes real rather than full of what if's.

I'm sure you're right.

irena58

Thanks to all that commented. To sell the house now means a hudge loss for us. We shall keep looking for jobs - if one of us gets a job, we shall be able to get a new mortgage (re-mortgage) on a longer term. I will keep you posted of our progress.
Thanks once again.

irena58

Yes, we have a child and my husband was a self employed consultant.

irena58

We bought the house mortgage free, but needed money to refurbish it. We took the mortgage later to complete the refurbishment.

irena58

ViolaLass wrote: »

Would it be an option to change the length of the loan and get it over 10 years instead of the four left, for example?

This is what we'd like to do but HSBC would not change the terms

kingstreet

Best of luck to you irena. You've managed to pick the one lender who, as a matter of policy, won't switch borrowers to interest-only for a short period to help with situations such as yours.