Mortgage maturing help

mp86

Hi there,

I have a friend who has 9 years left before their mortgage matures but has £200k left to pay due to some ill fortune and defaulting previously on monthly payments.

The current mortgage payment is interest only and the bank have said they are not willing to change the mortgage to repayment which means even if my friend could pay more money into the mortgage, they won't allow it.

I need to find out if it's a fixed term contract with the current bank but just wondering if anyone has any advice on how to start paying back more before the mortgage matures and what help there is for people in this situation?

My friend would like to change to repayment mortgage so is it best to seek advice from a mortgage broker or a bank? I know banks now have tougher lending rules.

Please reply if you have any advice.

Thank you!

Thrugelmir

mp86 wrote: »

The current mortgage payment is interest only and the bank have said they are not willing to change the mortgage to repayment which means even if my friend could pay more money into the mortgage, they won't allow it.

My assumption would be is that the lender is unwilling to extend the term. At just a 4% interest rate the repayments would be over £2,200 per month over 9 years. So affordability is kicking in.

There's nothing to stop your friend overpaying now though. While considering a longer term plan.

mp86

Thanks for the reply. He asked the bank to pay more but they refused. It's really strange they would refuse but I guess it may be the rate he Is on which is why they refused?

I think he can do £2k a month and some lump sums so possibly paying the mortgage before it matures but would a broker be able to get a mortgage with only 9 years left?

CKhalvashi

If still in a term (whether original or renewed fixed term), there may be a penalty, but it shouldn't be rejected for additional payments.

My advice on these amounts would be to save however much in an account for a period, and try the bank again for the overpayment after few months, to see what is the situation.

getmore4less

Which lender?

What rate?

Not being able to overpay is highly unusual

maninthestreet

When was this mortgage taken out?

mp86

Mortgage was taken out over 10 years ago- don't have exact dates but it is bank of Ireland.

getmore4less

http://www.bankofirelandmortgages.co.uk/residential/manage-your-mortgage/overpayments