Help about interest only

Mortgage_worry

Me and my husband are in our 60 s and the morgage ends in 9 yrs but we have no way of paying the £20000.00 left and really don't want to move . We did ask an adviser but could offer no help . The mortgage company wount discuss it until 2 yrs from the end which we will be to old to do anything about it . There will be lost of pepole in the same position in the future , but we're at our wits end we have spoken to so many pepole. We did think of equity release but there isn't much left in the equity so I'm hoping someone can offer any advice xx

ACG

£2000? Is that the correct figure?
If you can not overpay by £2k in 9 years I think you have some bigger issues such as interest rate rises to worry about.

Could you confirm the actual balance of your mortgage?
How much the property is worth.
How much your incomes are.

Mortgage_worry

Sorry I missed a 0 . it's two hundred thousand xxx

Foxy-Stoat_3

If you did not take out an endowment policy to run along side your interest only mortgage or have a re-payment strategy then you will need to pay maximum of £1850 a month to pay for your mortgage that you took out, but you knew that anyway.

You may be able to pay slightly less with interest accounts such as ISA's or savings account, maybe budget around £1500 a month to start with and see how it goes in a few years.

Either save up to re-pay the capital or downsize.

ACG

I dont mean to be rude but there is no magic wand for this.
If you can not afford to overpay by the tune of whatever is needed and there is not enough equity to do equity release... what do you think anyone can do?

The only option I can see here is that you start to overpay by whatever you can afford to each month, in 9 years the balance will hopefully be considerably less than it is now. That then give you 2 options in 7-9 years:
1) Equity release,
2) Show halifax how you have been bringing the balance down and have a history of it and will the allow you to carry on after the deal finishes. If they say no, there could be other lenders who will at that point but as its a decade away near enough anything could change in that time - your numbers may have come in for example.

dimbo61

If you cannot afford to overpay then you will have to sell either now or in a few years time!
Not sure how much you are paying even IO on a £200K mortgage and how much it would cost to rent a property in your area?
You should look at Over 55,s rental properties in your local area.

Mortgage_worry

Thank you everyone for the advice I know it's our fault just needed any advice thanks again

Thrugelmir

Sit down and start planning for retirement. Unfortunately it's late in the day to decide that you don't want to move. Accepting the fact that you may have to move. Will help you focus on what's achievable. As there's little benefit in entering retirement for a huge mortgage. Interest rates may be low now. What if they rise to 6% or 7%.

What rate of interest are you currently paying on your mortgage? As paying down as much capital as is affordable. Will at least put you in a better place financially.