Interest only mortgage?

tomtontom

Are we really referring to a 63 year old lady, 53 when she took out the mortgage, as an "elderly lady"?

Georgiah406

I'm not saying she is incapable but she's scared to tackle this herself as she doesn't know what to say. With all due respect, I have posted on here to try and get some advice, I don't think that classes as advice.

Let_Us_See

Georgiah406 wrote: »

As I said before, I work in mortgages myself and find it abhorrent that she was given the mortgage in the first instance.

I am pleased you are trying to help your gran but find it strange you work 'in mortgages' and yet:-

1. Find it "abhorrent" a 53 year old obtained an interest only mortgage? Perhaps you would have preferred her to be homeless?
2. You don't understand neither a residential re-mortgage or a lifetime mortgage is possible as you have confirmed there is no equity in the property.

Unless Halifax has a change of heart and are willing to extend the term for a considerable period (which I doubt) there is not going to be a mortgage solution to this predicament, and as already advised you will have to look for assistance elsewhere.

Georgiah406

At the point she remortgaged the house was worth a lot more. Selling the house and downsizing would have been a better long term solution. I found it 'abhorrent' because it was given to her when they knew there was no endowment. I am aware that financially it's not possible for her to stay in the house however she would be on a long waiting list for a council house and I wanted advice for in the meantime as her mortgage expires in less than 3 years. I really am just trying to think of other avenues to explore that aren't going to put her in a worse position, not to be judged on what is elderly or my knowledge in mortgages. I work in mortgage arrears and repossessions and am aware of my own company's policy on term expiry but not any other company's.

Let_Us_See

Ah! That explains many things and accounts for some of your posts.

Basically, your gran took out an interest only mortgage with Halifax and nominated an ISA as the repayment vehicle, and therefore mention of an endowment is just confusing.

My comments reference mortgage solution still apply and you need to consider other options.

Pixie5740

The interest only mortgages of the 2000's aren't the same as the endowment mortgage of the 1980's. Borrowers weren't required to have endowment policies running along side of the mortgage. They just had to have some kind of repayment vehicle and in your gran's case it sounds like the ISA was it.

Your gran took financial advice from a mortgage broker so it wasn't up to Halifax to advise her.

If there's no equity in the property then that rules some avenues out for your gran. Unless a family member can afford to buy the property and let her live in it then she won't have much choice but to sell. The council's housing officer or even Shelter would be good places for your gran to get information.

Mojisola

HappyMJ wrote: »

She can sell and move into rented accommodation and pay rent. If her income isn't high enough she'll get some housing benefit.

luvchocolate wrote: »

Hi put her name down with all the housing associations in the area for over 55s...usually housed within 2 years often quicker if she has health problems, much quicker than the council.

Georgiah406 wrote: »

I really am just trying to think of other avenues to explore that aren't going to put her in a worse position

Selling and going into a rental seems the best option.

POPPYOSCAR

robotrobo wrote: »

quite right!. you didnt get a mortgage unless you had a life endowment running alongside the debt, in my case ok, i had 4k to put to on the shortfall . Something does not sound right with this,

No not correct.


We have an interest only mortgage and it is only recently that our lenders have contacted us asking for details of how we intend to cover the mortgage i.e pension, investments etc.

Georgiah406

I've been considering buying the property from her myself and she would live there until the council come through with a house, not sure how this would affect my ability to get another mortgage on a property for me and my partner though??

ViolaLass

Georgiah406 wrote: »

I've been considering buying the property from her myself and she would live there until the council come through with a house, not sure how this would affect my ability to get another mortgage on a property for me and my partner though??

Oh boy, that would really complicate things (could you get a BTL mortgage? Would you be prepared to evict her so that the council would have to take her? Would you charge her rent? If not, now would you cover the mortgage? etc etc)