Mortgage Ending before House is sold.

Dave50

Yes, I know I am stupid to have put myself in this position, have been an ostrich!!
Basically my mortgage expires on 31st March, approx £25k.
I was hoping to have sold the house by then and paid it off, but now looks likely to take 3 months or so, (long story).


First, should I fund this from a short term loan, assuming that
I can get one (I'm now a pensioner) or should I try and make an arrangement with my mortgage provider in the short term? They have indicated that it would "roll on" for a month before being looked at seriously. I also realise that they will not release the deeds, until the debt is cleared, which will cause a problem with a sale.


Also, thankfully there isn't a chain involved.


Any suggestions would be very gratefully received.


Thanks

dotdash79

If you have a sale agreed then they will let it roll until the salvoes through, it's in no ones interest for them to start repossession whilst a sale is progressing.

lee111s

What do you mean the mortgage is expiring? Do you simply mean the deal is coming to an end? Or you have reached the end of your term and require the sale of the house to pay it off?

If the latter, I guess you need to call the mortgage company and explain the situation.

jonesMUFCforever

My guess you will be coming off a fixed rate to a variable rate.
They should inform you what the new repayment will be if the house remains unsold.

redpete

My guess is that it's an interest only mortgage that is coming to the end of the term and there is no repayment vehicle in place (apart from selling the house).

It's also clear that they have talked to the lender already and they have given an 'indication' of what they would do. Time for a detailed discussion with them to talk through the various possibilities (sale does go through in 3 months, sale takes 4 or 5 months, sale falls through completely).

As for them not handing over the deeds until the sale is complete - isn't this the same with any mortgage lender? Just needs the solicitors to coordinate the sale process.