6yrs 11mths left on interest only - advice please

midebt

hi

just a few questions

we are mid 50's and have got an int only mortgage - term remaining 6yrs 11mths ...

so Santander have requested our plans ???

plan is to sell up nearer the end of term - apprx 4-5 yrs .


we do not have any endowments
the answer is to sell ....to pay the outstanding owed and re-rent

or is there another way ????

please ....only sensible answers -

is there a way of selling and re renting ???? are there such 'decent' companies out there .....who do this ???

and no i wont win the lottery as i dont gamble ....

thanks for reading and any replies

Kynthia

It is extremely unlikely that you will be able to sell your property and rent it back as many if these schemes were dodgy and banned. However read below:
http://www.adviceguide.org.uk/england/debt_e/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/sale_and_rent_back_schemes.htm

How much is your property currently worth and how much will you have to repay the lender?

silvercar

Another way would be to re-mortgage and extend the term from 4-5 yrs to 14-15 yrs or even longer, depending when you intend to retire and if you will have enough income in retirement to service the mortgage. An extended term gives you the possibility of moving to a repayment mortgage so the cost of repaying the capital amount borrowed is spread across the whole longer term and makes payments more affordable. You could find that this is cheaper than renting and gives you security.

Always the option of selling and buying something cheaper - with or without a mortgage.

want_to_save

quick question how have you managed to have an interest only mortgage without any underlying savings, were you not aware you would have to pay back the loan?

Thrugelmir

Why not downsize now and buy a property on which you can afford to repay the debt before you retire?

midebt

Kynthia wrote: »

It is extremely unlikely that you will be able to sell your property and rent it back as many if these schemes were dodgy and banned. However read below:
http://www.adviceguide.org.uk/england/debt_e/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/sale_and_rent_back_schemes.htm

How much is your property currently worth and how much will you have to repay the lender?

property is currently worth £12000 maybe 13000.00 ....tops with 90'000 owed ....we got 6yrs 11mtths....before end of term

staffie1

midebt wrote: »

property is currently worth £12000 maybe 13000.00 ....tops with 90'000 owed ....we got 6yrs 11mtths....before end of term

Hopefully you mean 120000 ??

midebt

silvercar wrote: »

Another way would be to re-mortgage and extend the term from 4-5 yrs to 14-15 yrs or even longer, depending when you intend to retire and if you will have enough income in retirement to service the mortgage. An extended term gives you the possibility of moving to a repayment mortgage so the cost of repaying the capital amount borrowed is spread across the whole longer term and makes payments more affordable. You could find that this is cheaper than renting and gives you security.

Always the option of selling and buying something cheaper - with or without a mortgage.

we asked this week about a repayment mortgage ...for the term of the mortgage ..it would be 1268.00 per month for 6yrs 11mths .... + all our bills - car - food ...etc etc ...

we have life cover for any eventualities ....

no further endowments .....


i am 57 yrs ....with 9 yrs to work
hubby is 58 with 8 yrs to work....so i gues we could extend the mortgage to 8 yrs .....thats a thought i will put on my to do list .

midebt

staffie1 wrote: »

Hopefully you mean 120000 ??

120'000.00 yes ...thats correct....sorry

midebt

Kynthia wrote: »

It is extremely unlikely that you will be able to sell your property and rent it back as many if these schemes were dodgy and banned. However read below:
http://www.adviceguide.org.uk/england/debt_e/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/sale_and_rent_back_schemes.htm

How much is your property currently worth and how much will you have to repay the lender?

worth 120'000.00 90'000.00 to pay back

midebt

want_to_save wrote: »

quick question how have you managed to have an interest only mortgage without any underlying savings, were you not aware you would have to pay back the loan?

yes we were aware ...always have been....

mortgaged with Santander..... got the mortgage easily enough .....how ???? u tell me ...