Trying to extent Mortgage due to end of 25yr term

lonestarfan

OP PeteTong - I hope that they can overcome the bankruptcy thing for you and allow a joint mortagge to allow you all to stay in the same home. Good luck.

PeteTong1

anselld wrote: »

She would not meet MMR on her own, without your contribution to the bills. Hence their concern about a potential split.

If it were a joint application then they are not so concerned about a split because both parties remain jointly ans severally liable, split or not. As a single application they will only accept if her single income covers all the outgoings.

The mortgage adviser went through her income and expenditure (the bills, etc) he knows all about MMR as that is what he works to, afterwards he stated an 18 yr term would be affordable but not a 15 yr, couldn't go any longer due to age, it was also decided to go for a 5 year fixed. It was the underwriters who then decided that should I leave then she couldn't afford it, even though my income wasn't ever considered. May I also add that the advisor wasn't branch level, he was a specialist from there head office dealing with this type of problem, I think he was surprised with the underwriters decision as were Stepchange.

PeteTong1

I forgot to add, if my partner was behind with her payments and owed x amount then they would have extended the mortgage as it comes under different criteria.

struggler

Dave_Ham wrote: »

This gives people false hope, the lenders will and are going through formal processes and will repossess.


Yes they are likely to grant 6 months and even up to 18 months extensions to be reasonable, but we have seen people with orders and dates they need to be out by.


Going back to OP, Woolwich are not duty bound just to extend a mortgage (or indeed offer a new one) just because is does not fit with your plans. They have stuck to their original mortgage they offered.


Surely the simple answer is you to be added to the mortgage in order to make achievable - assume there is a reason why not.


Secondly, to switch lenders can cost nothing but a new mortgage is almost certainly going to be on repayment and therefore this may be a consideration.


There appears to be solutions, but rather than waste your energy bemoaning the lenders lack of flexibility and communication (and it can be poor with Woolwich) get out there and identify your own solution.


Talk of stepchange was just someone trying to get you off the phone/out of branch.


Good luck

Do you think they will repossess if I am 70 and in poor health ? Am worried about what do do. I have a low tracker interest only and should be able to keep paying. Even if only for a few years,, then sell or do equity release if the release will repay the mortgage

SG27

PeteTong1 wrote: »

The mortgage adviser went through her income and expenditure (the bills, etc) he knows all about MMR as that is what he works to, afterwards he stated an 18 yr term would be affordable but not a 15 yr, couldn't go any longer due to age, it was also decided to go for a 5 year fixed. It was the underwriters who then decided that should I leave then she couldn't afford it, even though my income wasn't ever considered. May I also add that the advisor wasn't branch level, he was a specialist from there head office dealing with this type of problem, I think he was surprised with the underwriters decision as were Stepchange.

How about trying a different lender and ignoring you completley? If you say its affordable on her own under MMR. They cant plan for you splitting up and not paying if you tell them you pay nothing currently.

lonestarfan

struggler wrote: »

Do you think they will repossess if I am 70 and in poor health ? Am worried about what do do. I have a low tracker interest only and should be able to keep paying. Even if only for a few years,, then sell or do equity release if the release will repay the mortgage

Are you in employment now or retired? What income do you currently have and what income will you have when you are 70?
Do you have an employer pension and if so when will that pay out.
What's the loan amount outstanding and current value?
I would engage a broker and also do the things I suggested in my previous post to you.
Who is the lender?

struggler

Retired income c. £32,000
Loan £206000
value £300000
The Mortgage Business (Halifax/Lloyds)

Have £80,000 in pension but need for incom

lonestarfan

struggler wrote: »

Retired income c. £32,000
Loan £206000
value £300000
The Mortgage Business (Halifax/Lloyds)

Have £80,000 in pension but need for incom

I don't know much about equity release but your LTV is about 68% so not sure they do ER that high.
You could overpay or save between now and 2016 but not sure how much from your £32000 you can do or you could sell and downsize but I know you'd prefer to stay in the house if you can.
I'm unclear how old you are now - but I think you mean you are of pension age and have an income from pension of £32000pa.
Not sure what your plan was initially anyway to repay the mortgage over the 25 years - eg did you intend to repay with an endowment that won't pay out the amount you expected, or a pension etc.
Your income seems a bit light for a loan of £206000 too.
I hope a broker could help you if they had all the pertinent info.

Thrugelmir

struggler wrote: »

No capital at the moment I'm afraid. Have some equity and I would hope to have enough to get lifetime mortgage/equity release, age permitting. Just wondering if I should talk to lender sooner than you suggest. Its The Mortgage Business (Part of Halifax/LLoyds)

By the way it was the banking crisis helped get me where I am with this mortgage !

How will you cope with higher interest rates then? Lenders will base affordability at 7% rates.

valleysvc

I am in a similar position to OP insofar as my mortgage is due to be repaid in 3 months and the provider is Barclays (Woolwich).

I was sold a pension mortgage which would be used to pay off the mortgage and the funds are there to do so but the law has changed and the pension cannot be accessed until I'm 55 whereas previously it was 50.

I don't meet their criteria for a new mortgage etc even though all payments on mortgage , loans etc are all up to date and I am in no financial difficulty.

All I want is to extend the interest only payment period until the pension fund can be accessed in 3 years but have been told they can't do anything for me and to contact Stepchange and some other team from Barclays would be in touch/ may be able to help but not until the due date had passed.

They agreed the pension as a means of repayment and through no fault of my own I can't access it on the due date.

Anyone else in the same position or have any suggestions ?

Cheers