No money to pay interest only mortgage

getmore4less

Can you draw the pension at 55 and carry on working?

My OH took her NHS pension early and carried on working.

(in her case it was worth it, but she was part time anyway, as full timer you may take too big a hit)

holly_hobby

Dave_Ham wrote: »

As Jimbo says and with the withdrawal of Interest Only at the highest LTV's, this will become a bigger issue in years to come and the FSA need to be on the front foot given the recent endowment/PPI scandals.

That said, I stand by my original post to try and start resolving this now as there is likely to be no magic wand.

Incidentally Jimbo, be interested if you are a broker (you need the tagline at the bottom of posts) although you put an awful lot of stock in FSA, policies, procedures, TCF as in prior post regarding non-regulated buy to let activities. On a side note, think you were a tad unfair on Holly in that thread, given Holly gives some of the most detailed responses and support on here and almost always is factually correct - including in that thread in my opinion...

Good luck John - come back and let us know how you get on and do ask any questions...

Thanks Dave ....

OP - Dave is completely right as usual .... its unfortunate that since you got on board with the lender their operation as changed ... extending to age 60 as a Teacher, with a demonstrable method of repayment shouldn't really cause an issue ... but a term exetension is down to the lender, of which the FSA can not force them to apply - although in this case FSA principles re TCF are applicable.

The peeps you speak to you on their helpline are often not qualified to agree to term extensions, amendments to borrowing etc ... so the fact they quickly said no isn't necessarily the end of the road .... but as I say it is down to the UWs and the business paramaters now they are closed to new business - to which a well presented case inc verification that the TFC on retirement will satisfy redemption (which I know you will give) will be the key ....

Hope this helps and best of luck

With fingers crossed ... x

Holly

John1429

Thanks Holly. I will write a letter with a copy of my pension lumps sum detaila and reasons for extension to Acendon. Will contact CAB if still no solution. Will update when there is any update.

Thanks to all for all the very insightful information.

noddynoo

I can't believe people think this is something for the bank to sort out! Sell up pay them back and rent or if you have equity start again

DVardysShadow

noddynoo wrote: »

I can't believe people think this is something for the bank to sort out! Sell up pay them back and rent or if you have equity start again

The problem as originally stated was effectively how to avoid the scenarios you are offering as 'solutions'. But thanks for playing.

noddynoo

DVardysShadow wrote: »

The problem as originally stated was effectively how to avoid the scenarios you are offering as 'solutions'. But thanks for playing.

I know that but this screams of people who took out cheap loans with no repayment vehicle wanting their cake and eating it too! You knew what the deal was when you took the low monthly repayments the solution was at the start not burying your head until the end

HAMISH_MCTAVISH

noddynoo wrote: »

I know that but this screams of people who took out cheap loans with no repayment vehicle

There is a repayment vehicle.

A pension lump sum.

You knew what the deal was when you took the low monthly repayments the solution was at the start not burying your head until the end

That the OP has had to delay retirement as his wife has developed a serious illness is beyond his control.

He scheduled the mortgage to expire with his planned retirement date. Entirely reasonable and prudent.

It's hardly too much to ask in a civilized society for the mortgage provider to extend the term they get to make a profit from him for another 5 years....

John1429

Thanks HAMISH_MCTAVISH for reading my post in more detail than the previous poster.

Loanranger

noddynoo wrote: »

I know that but this screams of people who took out cheap loans with no repayment vehicle wanting their cake and eating it too! You knew what the deal was when you took the low monthly repayments the solution was at the start not burying your head until the end

Unhelpful.
Go back and read the original post.

magpiecottage

Holly is quite correct that the FSA cannot force the lender to extend the term.

However, I have found a Memorandum of Understanding between the FSA and the Lending Standards Board.

This says (para 4di) "Financial difficulties is FSA's high level principles and rules and in particular Principle 6 (a firm must pay due regard to the interests of its customers and treat them fairly)".

That is where I think an argument can be built up.

The OP says he was told there would be no problem extending to 60.

There is no reason to suppose he will not be able to maintain payments until then.

At 55 any pension lump sum will be considerably smaller than at 60.

60 was historically the retirement age for teachers although, if he chose to, he could now continue longer (and thus still make repayments).

The difficulty that has meant he is not in a position to repay when he planned is that his wife has become ill and had to give up working, so their resources are have been severely stretched. This was unforeseen and not their fault.

From the lender's point of view, they get anything up to ten years' more interest without any need for marketing.

These are arguments to put to the lender. If they refuse then go to FOS - who CAN force an extension.