10 year Interest Only Mortgage-Forced Sale Advise Please

dalton_2

has anyone written to mortgage company asking for extension of interest only mortgage and if so what was outcome if any

ACG

I have not read all of your post, its too long and too late.

What outcome do you want? Im assuming you want to keep the property?

You say it doesnt matter how far short you are... but it does.

How much is the property worth?
How much will be outstanding?
How much is your income?

If you are on £50k and the mortgage outstanding is £300k, then yes its the case of selling up most likely.

If there is £20k outstanding then you could look at secured loans/small mortgages that can go beyond 65.

It might be worth speaking to a broker but if you let us know the answers to the above, im sure I and the other brokers can give some pointers. I wont be replying tonight though.

M_e

I feel for you as that's a horrible position to be in

ACG wrote: »

I have not read all of your post, its too long and too late.

What outcome do you want? Im assuming you want to keep the property?

You say it doesnt matter how far short you are... but it does.

How much is the property worth?
How much will be outstanding?
How much is your income?

If you are on £50k and the mortgage outstanding is £300k, then yes its the case of selling up most likely.

If there is £20k outstanding then you could look at secured loans/small mortgages that can go beyond 65.

It might be worth speaking to a broker but if you let us know the answers to the above, im sure I and the other brokers can give some pointers. I wont be replying tonight though.

He didn't say the value

He didn't say what was outstanding

Currently un-employed

PeacefulWaters

I shall attempt to edit your post as it's ramble.

dalton wrote: »

I have a Joint Interest Only Mortgage with my partner for £131,150 which was taken out in December 2004 and is due to end term in 14 December 2014.

Is £131k still the balance? What rate are you paying? How much is the property worth?

Now as I write this today the mortgage is due in 8 months I have saved some money but not enough to pay off the mortgage it does not matter how far short it is it simply is not enough

How much do you have saved? How old are you both? How much are your current incomes?

I have problems with my credit files with defaults on there so that option is out of it.

What problems specifically? Dates, amounts etc?

all I want to know is the procedure and if anyone has got a solution or real advice on what to do?

As I see it you have three options.

1. Sell.
2. Negotiate with IF (who are under no obligation to extend a term that has been in place all along.
3. Find a new lender.

I am amazed at how a situation like this dies not seem to have a plausible solution

See above. They are your choices.

I am unemployed at moment. The only option I see is to sell the property and try to get best market price for it?

From where I am this is the most logical solution.

The other option I have is ask mortgage company to extend the term, I had asked them previously but the turned me down without reason and were totally uncooperative.

You're unemployed. You're wife is above retirement age. You've made little or no effort to find a way to repay the capital. You have credit file issues. With the greatest respect, all these are good reasons not to extend you mortgage facilities.

I feel like I have been really forced into a corner by the mortgage company

They said the wanted their money back in 10 years. The corner you are seeing has been heading your way for over 9 years. There's no "forcing" going on. It's what you agreed to.

and don't know if I have any grounds for appeal or to complain to somebody or organisation that actually gives a damn

Google FOS. But I'd be amazed if they said the lender has done anything wrong. They can't compel a change in policy or commercial judgement on a lender.

I live in the real world where money talks everything else walks

In that case, get your property on the market. Time to sell.

Once December comes if I do not pay the mortgage how long does it take the mortgage company to get you out ?

They need a court order. You'll end up paying any costs for that. It will buy you a few more months. But you are, by the sound of it, only delaying the inevitable.

Any help or advise is appreciated, apologies if seem annoyed it just frustration at being in the situation which no one seems to have a clue about frankly I think its unbelievable.

You seem to be expecting a solution that doesn't exist.

CKhalvashi

OP - If Peacefulwaters' post seems a little blunt, it is a lot of common sense here.

CK

getmore4less

£130k 25 year repayment at say an average of 4% would have been £687pm after 10 years you would owe £92600.

So if you had got the original mortgage that's sort of where you would be today.

Were you at least paying/saving that much to be on track for even a 25y loan?

How much will be outstanding in December if you use all your savings?
(if you have other debts what are they?)

What's the house worth now?

how old are you?

any pension lump sums.

getmore4less

you asked about this 3.5 years ago what did you do then?

https://forums.moneysavingexpert.com/discussion/2818470=

haras_nosirrah

do you still have half the house value in savings?

Any way of selling and buying a smaller place outright?

Otherwise only option is to sell and rent or see if they will extend on interest only however you are only delaying the inevitable and at some point they will not extend further and will want their money back and you will have to sell

Thrugelmir

The mortgage company have not forced you into any corner. The onus is on you and your partner to manage your affairs. If there were options then you would have been offered them.

Sell the property before a sale is forced. As you'll incur considerable charges if you allow this to happen. As your options appear very limited.

dalton_2

appreciate your point about no none forcing you but when you get agreed for a repayment 25 year mortgage only then to be told take you have no option but to take a 10 year interest only I am not sure we are still on same page - thanks for your comment

tomtontom

dalton wrote: »

appreciate your point about no none forcing you but when you get agreed for a repayment 25 year mortgage only then to be told take you have no option but to take a 10 year interest only I am not sure we are still on same page - thanks for your comment

You did have other options - to walk away or to seek lending elsewhere.

A complaint is unlikely to get you anywhere, no one forced you into this situation.

For further advice you're going to need to give more information.