Remortgage term end time up

Peco141

Hopefully this question isn't too vague that it'll receive some feedback and answers from you guys in the know..

Parents remortgage the house a while ago and went interest only. The final payment in the region of £60,000 is due around mid December.

They have spoken to a financial advisor who hasn't produced any positive feedback from his research. In fact the most recent information he has provided is that the lending company who lent the remortgage to the mortgage company will not discuss matters until the aforementioned date in December. They couldn't be less specific if they tried.

Does this mean my parents will lose the house on that date or will they have a period to look at other options, if so how long?

Thrugelmir

Does the mortgage term expire or just the product?

Makes a difference to the answers you'll receive.

Yorkie1

And, how old are your parents, and how much is the property worth?

Peco141

Thrugelmir wrote: »

Does the mortgage term expire or just the product?

Makes a difference to the answers you'll receive.

The term ends and final payment is required.

Peco141

Yorkie1 wrote: »

And, how old are your parents, and how much is the property worth?

65 years old. the property is worth anything in the region of £150k to perhaps £180k possibly a little more, we're not entirely sure.

Simon_gloster

The thread that many are defending around annual repayment evidence should take note of this one thread among probably hundreds on the forum of people caught in this trap.

Not to mention high street lenders as many have options, but those with Money partners, mortgages plc, SPML etc should be worried as options will be grossly limited. 30 pence worth now spent.

Thrugelmir

Peco141 wrote: »

The term ends and final payment is required.

Then onus is on your parents to take action. Lender will look closely at the question of affordability when granting an extension. If they weren't in a position to repay any of the capital previously one assumes then the situation will become even more difficult going forward.

Peco141

Simon_gloster wrote: »

The thread that many are defending around annual repayment evidence should take note of this one thread among probably hundreds on the forum of people caught in this trap.

Not to mention high street lenders as many have options, but those with Money partners, mortgages plc, SPML etc should be worried as options will be grossly limited. 30 pence worth now spent.

I'm really not sure what you are saying here.

Peco141

Thrugelmir wrote: »

Then onus is on your parents to take action. Lender will look closely at the question of affordability when granting an extension. If they weren't in a position to repay any of the capital previously one assumes then the situation will become even more difficult going forward.

The plan was paying off the remainder when my gran passed away as they own the house in which she lives with a value of around the same amount due if £60k.

She is still going going strong in mid 90's. The question is how do we find out if an extension is even an option if they won't even open discussion until mid December.

They realise they have put themselves in this position but the lack of clarity and uncertainty is an extreme cause for concern I'm sure you'll understand.

mrginge

Peco141 wrote: »

The plan was paying off the remainder when my gran passed away as they own the house in which she lives with a value of around the same amount due if £60k.

She is still going going strong in mid 90's. The question is how do we find out if an extension is even an option if they won't even open discussion until mid December.

A plan that relies on someone having to die?
What an interesting concept. One i feel i must refrain from commenting further on.

Thrugelmir

Peco141 wrote: »

They realise they have put themselves in this position but the lack of clarity and uncertainty is an extreme cause for concern I'm sure you'll understand.

Of course I have empathy with their situation. Being proactive has to be the way forward. As the lender is unlikely to provide the solution , more likely a stay of execution.