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Trying to extent Mortgage due to end of 25yr term
PeteTong1
Posts: 7 Forumite
Hi,
I looking for advice, my partners mortgage comes to its end of term this December and currently she has been paying only the interest, I won't go into the realms of why as that has passed, but she is having problems with Barclays/Woolwich in extending the mortgage time and being pulled through one hoop then another. She contacted the lender about 10 months ago and was given the wrong info along with the wrong forms sent to her, she has been sent from one person to the next, had interviews with their mortgage advisors and even advised to contact Step Change.
Now my partner works 20 hrs a week and takes home £520 per month, working tax credits of £200 per month, she very recently cleared a loan at £180.00 per month, the only other debt is a Dorothy Perkins card at £10.00 per month, the outstanding mortgage is £46000 with a property value of £120000, I live with her and have done for more than 15 years.
It has now come to the point where Barclays/Woolwich underwriters have stated currently they will not extended due to the fact that I pay some of the household bills and should I leave (even though not in my thoughts) she would then have to pay all the bills, leaving her short. Stepchange did not understand why we were recommended to contact them as we have no debts and are not in financial difficulty, they also commented on the reason why lender won't help "that in the event of, you can summarize anything". After going through our finances with step change just as my partner did with Barclays/Woolwich, it showed that the payments for a repayment mortgage over 18 years can be easily met
Barclays/Woolwich have stated that even though the mortgage is due to be settled in December it can continue for 6 months before they do anything, is this true.
Had Barclays/Woolwich changed her mortgage, her interest rate would be a lot less than the current mortgage, with an increase of only £130.00 per month.
What can happen next, what are her options, ideally she doesn't want to change lender due to further cost.
I looking for advice, my partners mortgage comes to its end of term this December and currently she has been paying only the interest, I won't go into the realms of why as that has passed, but she is having problems with Barclays/Woolwich in extending the mortgage time and being pulled through one hoop then another. She contacted the lender about 10 months ago and was given the wrong info along with the wrong forms sent to her, she has been sent from one person to the next, had interviews with their mortgage advisors and even advised to contact Step Change.
Now my partner works 20 hrs a week and takes home £520 per month, working tax credits of £200 per month, she very recently cleared a loan at £180.00 per month, the only other debt is a Dorothy Perkins card at £10.00 per month, the outstanding mortgage is £46000 with a property value of £120000, I live with her and have done for more than 15 years.
It has now come to the point where Barclays/Woolwich underwriters have stated currently they will not extended due to the fact that I pay some of the household bills and should I leave (even though not in my thoughts) she would then have to pay all the bills, leaving her short. Stepchange did not understand why we were recommended to contact them as we have no debts and are not in financial difficulty, they also commented on the reason why lender won't help "that in the event of, you can summarize anything". After going through our finances with step change just as my partner did with Barclays/Woolwich, it showed that the payments for a repayment mortgage over 18 years can be easily met
Barclays/Woolwich have stated that even though the mortgage is due to be settled in December it can continue for 6 months before they do anything, is this true.
Had Barclays/Woolwich changed her mortgage, her interest rate would be a lot less than the current mortgage, with an increase of only £130.00 per month.
What can happen next, what are her options, ideally she doesn't want to change lender due to further cost.
0
Comments
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You need to speak to an independent mortgage broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Ideally her lender should extend the mortgage term, but un-ideally they are not prepared to. So she will have to find another lender who will give her a new mortgage, as above speak to a broker or an Estate Agent NOW."Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0
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I find this really interesting.
Has anyone who has had an interest only mortgage, that has run it's course, but always kept up their repayments and been unable to find the funds to pay it off or re-mortgage, had their home repossessed yet?0 -
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as I asked.. has anyone in this position had their home repossessed yet?
TBH I don't think it will happen .0 -
There was someone posting here recently where the lender has taken steps to repossess and they had masses of equity but their age put them over 70 or whatever if they extended so they couldn't find a lender for their age/income.as I asked.. has anyone in this position had their home repossessed yet?
TBH I don't think it will happen .
A recent news item mentioned Santander are going to offer lifetime mortgages as the stats now show there are 3 expected peaks where people won't have the money to repay Interest only mortgages.
However to extend the term of the mortage this lady has to meet MMR. Sounds like she doesn't. Perhaps if OP has a job and an income then perhaps they could have a joint mortgage so they meet MMR?
OP - what age is she and what age are you and do you have a job/income? Is a joint app a possibility?0 -
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I love the Daily Mail..
honest reliable journalism.
Most editorials asking ..
does ...cause...?
Usually the answer is no
How did you know I am an avid daily Mail reader, you clever Telegraph reader you?0 -
I love the Daily Mail..
honest reliable journalism.
Most editorials asking ..
does ...cause...?
Usually the answer is no
How did you know I am an avid daily Mail reader, you clever Telegraph reader you?
Don't read the Daily Telegraph. Have no need to. My day job gives me plenty of insight into matters financial. Same old problems just new causes.0 -
causes or clauses?0
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