paying a chunk of mortgage off and lowering payments???

cornishchick

Hi all.
my husband has terminal cancer, and we have a £158,000 mortgage, taken out 6 months ago, before he know the cancer had returned after 10 years remission..
we dont have payment protection due to the cancer in the past.

anyway. he is being medically retired and should, get his pension in a lump sum. (we are just waiting to hear from the pensions group as to what they decide).
how ever this wont be enough to clear the whole mortgage. My question is, can we pay a lump sum off the capital and then reduce the payments to cover the remaining, but still over the same period of time (25 years). which I should be able to pay with just my wages thus allowing me to carry on living in the home we chose together, This worries my husband so much and he doesnt need that right now.
any advice is welcome. x thank you.

steeeb

Does your product or mortgage have repayment or exit fees?

You should be able to either reduce the term or the payments with most mortgage providers.

Sorry to hear about your husband.

kingstreet

You can normally pay off a lump sum of your choice, but as this is a recent mortgage, you may have signed up to an initial period where an early repayment penalty is payable on repayment above a certain level, 10% for example.

You need to look at your key facts illustration, mortgage offer and, of you've had one, mortgage statement, as the redemption charges will be shown thereon.

When you do make the overpayment, you need to tell the lender you wish to reduce the monthly payment, not the term.

No life or critical illness cover from before he was ill first time round?

cornishchick

kingstreet wrote: »

No life or critical illness cover from before he was ill first time round?

no , as he was refused cover due to the cancer last time, and he never saw a reason to get any when he was single. we have been together for 5 years and married for 6 months.
thanks I'll check that out later when I can get to the filing cabinat

Thrugelmir

Just a thought. Are you entitled to a dependents pension? Maybe more beneficial to take a higher pension than take the (full) lump sum.
The pension may well increase every year.

dimbo61

You need to speak to the pension people where your husband works/worked.
If you can find out how much he will get.
Even if you are in a fixed rate deal you can normally pay off 10% extra each year. look at cash ISA,s for some of the cash lump sum which may only be a max of 25% of his pension pot ( again please check !!)
Inform them that your husband has terminal cancer and contact Macmillian nurses for help. Speak to the benefits people to see if they can help you.