Mortgage Advice for Over 75's

susanwa

My Mother will be 75 this year and has a interest only mortgage which has to be repaid this year . When the mortgage was first set up the plan was to have downsized by the time my Mother turned 75 . However this has not yet happened due to my Father's death , but it is still the plan in the next 2 years . A possible move has recently been put on hold due to illness in the family and I was wondering if anybody knew if mortgage companies will allow such a mortgage to be extended by a year ?

Old_Git

easier to approach her current lender

Wh05apk

Depending on the property value, mortgage, and her income, there may be equity release type deals, if her income is sufficient, she could make the interest payments, to maintain the equity.

Annisele

You might be able to remortgage elsewhere - but as Old Git says, it's likely to be much easier (and probably cheaper) to ask her existing lender for an extension. I think they're more likely to agree if she can show that she's serious about downsizing (i.e. the property is on the market) but they might give a short extension anyway.

From the existing lender's point of view, they either give an extension (formal or otherwise) or they start possession proceedings. Possession proceedings are expensive and a pain for everyone, so they'd much rather the borrower sold if possible.