Mortgage cant pay so re-mortgage?

rockall81

Hi,

May be this question is vague, but friend of mine told me, in some mortgages, if i am unable to pay mortgage (i.e worst case scenario ) then i can take the money back and repay it montly.

For example i have put 100k deposit on 370k house, after a year or two. i fell ill, so for a year i want to pay mortgage from 100k deposit i have paid initially, is this possible?

May be better question is what can be done in this case (I dont want to rent )?

Thanks for the help in advance.

themull1

If you've overpaid your mortgage you might be able to use that, but not the deposit.

Funny_old_game

Is it interest only it repayment?

Thrugelmir

Sell up and downsize. Before you lose your equity entirely. .

Beckyy

No, you can't use your equity to make repayments.

I think your may have meant you could remortgage with a higher LTV to release come equity from your property. If you remortgaged, and increased your LTV (EG - taking out a new mortgage leaving you with £90K equity) then you would still have to show you were capable of making repayments to a new lender and would have to pay any fees incurred from leaving your current mortgage if it's still in a fixed period.

If you're unable to pay then I don't think taking out even more debt is the answer, you'd be better off selling up and downsizing.