Parents interest only mortgage ending

getmore4less

they are not tied by their jobs.

£350k any extension is a short term fix as soon as rate move they are stuffed 3% is £875pm

if they extended till any compnay pensions kick in how big would a limp sum be.

What happened to the redundancy money?

They need to get out now unless you decide you can help them.

Even if you diverted your £1kpm overpayment I don't think it would help.

Too late now but with 100k and a teacher salary thay should have made a big dent in the mortgage, when did they take that on?

brit1234

Don't you have to have a repayment vehicle when you have an interest only mortgage?

Contemptuous

brit1234 wrote: »

Don't you have to have a repayment vehicle when you have an interest only mortgage?

Nowadays (post MMR) yes, you definitely do. It's because of people like the OP's parents (no offence) that MMR had to come into effect, to prevent this kind of situation arising.

missbiggles1

brit1234 wrote: »

Don't you have to have a repayment vehicle when you have an interest only mortgage?

It used to be possible to have an IO mortgage which was repaid on the sale of the property and/pr on the death of the owner. Unfortunately, that dosn't seem to be the case any more.:(

RobMoney

What's the property worth now? A £350k property 20 years ago could easily be over 1 million now, so sell it to pay off the debt, then downgrade using the money made from the sale. Unless I've missed something. They've had multiple years in a house they've not paid for (only rented money from a bank for), and it's time to pay up now. That seems the obvious solution to me.

audigex

Their house is worth £350-400k as estimated by the OP, even if he's a bit off it's not going to be too dramatic.

They have an IO mortgage of 350k.

That leaves them somewhere between around 0 and 70k, but OP estimates around 40-60k as being accurate.

But yes, I think the OP has accepted that the only way this is really going to work is to release the equity in the property and downsize dramatically

Herzlos

How long ago did they buy?