badgers12

badgers12

my wife and i are both 72 and our mortgage is finished in april this year we do not have the total outstanding too clear off mortgage and have been told we are tooold to get a new mortgage can any one help

ethank

I assume that you either obtained interest only or otherwise had an endowment?

You have not given enough information here for anyone to give you any advice.

How much is remaining?
What type of mortgage did you have?
House value?

badgers12

i took a mortgage out 24 years ago ,and paid in too a endownment for what should have been £45000 pound it was on a intrest only mortage and started too pay at £900 permonth ,with the money from the sale of a first home being paid off the loan, but the home did not sell and and we had it on sale for nearly six years, we did rent it of for a while ,
the endownment we had was reduced by company from £45000 down too £1500 but payments increased so we cancilled it ,
the money we made off sale went in too bank isas,and improvent too house ,we bought it for £100000 price tag it now is worth £400000. the amount left to pay is £68000,what we did not know was we could have been paying 10% each year ,we were omly told we would pay a fine if we paid up befor date for settlement it was only 5 years ago we learnt about this and have done since then ,we have about £30000 in bank and about 10000 in shares, and if we paid about £30000 off it leaves us with £48000 too pay we are both 72 years old and i am told you can only get loans till you are 75 , can any one help ,do not want too get equity release but can not think of any other way want too stay where we are if possiable ,over the years rates have dropped and when i took loan out it was 15.5 % that is why we took intrest only now we are down too 3,5 fixed which is finised in febuary and loan finished in april, pay ment because we have been paying 10 % over last five years is £186.00 per month

ViolaLass

1. If you didn't know you could overpay by 10%, why didn't you save this money instead so that you could pay the whole thing off at the end?

2. If you pay off £30,000 now, surely that leaves £38,000, not £48,000.

3. Why not downsize?

4. What is your income?

badgers12

we did have a total of some £80000 ,in the bank after we managed too sell off first house ,and as time rolled on i was made redundant from offshore work ,some three times ,and was out of work for some eight months ,then got back too work,in africa, then had accident and layed up for nine months ,then interest rates dropped,went too work in singapore ,got work for two years ,then contract ended,back on dole,got work off yarmouth,and worked for 8 years ,then all the rigs had a shutdown and paid off again,picked up work in nigeria and worked down there for seven years ,then out of the blue rigs were shut down world wide,back on dole.i have allways went after work not wait for it too come too me i finished at 69
when i had had my fill,but after six month on shore,got hierd with my wife,too run a caravan site,which we didan just retired last year,when we were told that we would pay something like £10000.if we finished mortgage, we decieded too invest in house and it payed off from £100000 to £400000,we have been paying 10% off it for 5 years with this year,because of penilty

ViolaLass

I'm sorry, I can't understand some of what you write. What do you mean, you were told that you would pay 'something like £10,000'? Do you mean that's what you were told was remaining on the mortgage?

You also haven't explained why you couldn't downsize now or what your current income is.

You say you've 'invested' in this house - for what purpose? If it's to be able to pass the money on to children, downsizing would not stop you doing that.

badgers12

1 well when the loan was taken out and we sold other house,for us too clear loan it would have coast us around £10000 becuase of the amount they lose in interest,
2 the reason i do not want too down size is i have a detacted house which stands in its own ground which i own the land it is built on,i do not have any one with in a fifty foot area around me,and i can see across from my house up too 5miles in any direction,it is south faceing back garden with a half acre of land.and no high trees about and have the sun from early morning till very late at night,i have a double garage ,and space for five cars on front drive ,also it is in a prive culldesack ,on a
loverly estate
3 would you like too move

ViolaLass

badgers12 wrote: »

1 well when the loan was taken out and we sold other house,for us too clear loan it would have coast us around £10000 becuase of the amount they lose in interest So it would have cost you £10k in penalties? Why did you not save that money and regard it as 'the mortgage money'? What was your long term plan for the mortgage?
2 the reason i do not want too down size is i have a detacted house which stands in its own ground which i own the land it is built on,i do not have any one with in a fifty foot area around me,and i can see across from my house up too 5miles in any direction,it is south faceing back garden with a half acre of land.and no high trees about and have the sun from early morning till very late at night,i have a double garage ,and space for five cars on front drive ,also it is in a prive culldesack ,on a loverly estate Sounds great but you can't afford it!
3 would you like too move Not sure what you mean here. I don't need to move, I can afford my (tiny) house. I have cut my cloth according to my means.

Comments in red above.

ch3101

The issue we are having here is that you said that you didn't know you could pay the 10% per year and hence you didn't pay it.
What did you do with that money? You should have been saving it all for this point now where you must repay the mortgage.

Now, you're in this situation, folk on here can help.
Answer these questions:

How much do you earn?

How much exactly is outstanding on the mortgage?

How much do you have in Savings and Investments?

There should be a solution to this however no one can help if you don't give us the facts. And stop using the wrong "two", "too" or "to".

ViolaLass

badgers12 wrote: »

i have a double garage ,and space for five cars on front drive

Just noticed this bit - do you NEED space for so many cars??

badgers12

1= £1700 from two pension per month

2= £68000

3 =£35000