Interest Only Mortgage Finishing

techra02

Hi there

Bit of advice needed before I approach mortgage broker for a re-mortgage please. I am the sole owner of a mortgaged property aged 54. I have however been a little stupid and am now about to pay the consequence. About 5 years ago I was made redundant and had to reduce the mortgage to an interest only mortgage (always with the intention that as soon as I gained permanent employment I would redress the situation). I seem to have been unfortunate in the job stakes so have managed just to stay afloat.

I now find I may come towards the end of the time (about 2 years) and am working in fairly well paid contract role. Although not permanent it is fairly stable and I am quite rightly beginning to worry what I will be able to do. I have about £120,000 left to pay and have about £350,000 equity in the property. Is it better to overpay on the current mortgage and hope this stands me in good stead for the future (who knows what may happen), to go for an extension whilst I am working or pay into a saving account and see how much I have at the end for a lump sum. I don’t believe it will be anywhere near the required amount but would reduce the overall mortgage. I am afraid that if I talk to Santander about the true situation it may cause them to have alarm bells.

Any advice gratefully received.

amnblog

You may able to extend the term on an interest only basis with that much equity.

Engage a broker to help you explore your options and put your mind at rest.

gazter

techra02 wrote: »

Hi there

Bit of advice needed before I approach mortgage broker for a re-mortgage please. I am the sole owner of a mortgaged property aged 54. I have however been a little stupid and am now about to pay the consequence. About 5 years ago I was made redundant and had to reduce the mortgage to an interest only mortgage (always with the intention that as soon as I gained permanent employment I would redress the situation). I seem to have been unfortunate in the job stakes so have managed just to stay afloat.

I now find I may come towards the end of the time (about 2 years) and am working in fairly well paid contract role. Although not permanent it is fairly stable and I am quite rightly beginning to worry what I will be able to do. I have about £120,000 left to pay and have about £350,000 equity in the property. Is it better to overpay on the current mortgage and hope this stands me in good stead for the future (who knows what may happen), to go for an extension whilst I am working or pay into a saving account and see how much I have at the end for a lump sum. I don’t believe it will be anywhere near the required amount but would reduce the overall mortgage. I am afraid that if I talk to Santander about the true situation it may cause them to have alarm bells.

Any advice gratefully received.

Why don't you right now set up a monthly standing order into the mortgage account for whatever you think you can cope with. If you want it to be paid off by 60, you'll need to be dumping £2k a month into it.

getmore4less

Crunch some numbers with what you can afford to see where your target pay it off might be.

Personally I think it is better to address the issue sooner rather than later, as you have less time pressure now than you will have in 18months

Any way to increase income or review your housing needs.

Room for lodgers or could you move to be mortgage free.