Mortgage repayment - not gonna happen!

namregd

Hi guys

Some advice on this would be appreciated if possible. Due to some rather complex circumstances that I won't go into here, I am in the unhappy position of paying interest only on my mortgage with no chance of being able to pay off the capital. I am 59 this year, and so have 6 years remaining on the agreed mortgage term. The mortgage is £170K.

I have received three letters from the lender (The Halifax) asking how I intend to repay the mortgage at the end of the term. I have ignored the first two, but this last one has "final reminder" plastered all over it. I'm inclined to ignore this also (I'm sure they don't need to know at this stage that the mortgage will not be repaid). My intention is to continue to work until I drop and hopefully be able to cover the interest payments on the mortgage. If I can't, the house is theirs and I'll be a burden on one of my children!

Does anyone know if it's safe for me to ignore this letter, or is there a possibility that something unspeakable may happen as a result?

Thanks guys

Doug

izools

How much is the property worth?

namregd

About £210K. Difficult to tell these days!

adwat

Doug, I'd get it on the market ASAP, pocket any profit and rent somewhere nice and spend plenty of time with with your kids and grandkids. Life's far too short to be messing around with that sort of debt at your age if your only plan is to let the bank repossess anyway.

DannyboyMidlands

Sweeping it under the carpet until you're too old to work and the bank kick you out doesn't sound like a sensible solution to me. Why not sell up and pocket some equity while you have the chance?

Ms_Sophia

might be a good idea to sell, pay the mortgage in full, (hopefully) pocket the difference and then use it to buy a much smaller place - where you can hopefully afford to pay repayment mortgage. Also while you're 59, I'd think it'd be possible to get 10-11 years mortgage claiming you'll be working at least until you're 70. In a few years time it might become impossible for you to get any new mortgage because of age.

namregd

Hi guys
Thanks for those responses, I really appreciate it. In the short term, if I respond to that letter and explain to the lender that, as things stand at present, I will be unable to repay the loan (apart from perhaps by selling the house), is there anything they can do? I'm assuming they must let the original term of the mortgage run its course, providing I keep up the repayments. Anyone know the answer to that? In the meantime, I can figure out a way to get out of this almighty mess, if a way exists.
Thanks
Doug

hcb42

Just tell them you plan to sell the house and repay the loan before the term ends (if you are accepting that is what you need to do)

They havent got a huge risk here if it's worth what you say it is.

Thrugelmir

namregd wrote: »

Does anyone know if it's safe for me to ignore this letter, or is there a possibility that something unspeakable may happen as a result?

The NW are covering themselves by writing to you. So that in the event of repossession occurring you will will have no grounds for complaint against them.

RecoveringAlcoholic

My intention is to continue to work until I drop

This helps to make The Fat Cats fatter.

Escape from the mortgage debt pit.

hcb42

RecoveringAlcoholic wrote: »

This helps to make The Fat Cats fatter.

Escape from the mortgage debt pit.

and how is that helpful?

People who get mortgages tend to pay them off before they retire, and so do not have to be renting , paid for by the state, when they do not have an income.

That is not making fat cats fatter, that is simply protecting oneself from future poverty.

The OP has not a lot of options here, unless they get the winning ticket tomorrow, but let's not pretend there is a conspiracy here. you don't know his circumstances any more than you know anyone else's but your own

Many people who took mortgages are now secure knowing they can downsize if needs be, as they have paid their property off, and be financially comfortable.