Interest only mortgage

Spirittiger

Hi
Some advice needed.
I have an interest only mortgage with alliance & Leicester..it is ending in a few months.
I asked a&l last year if I could start another mortgage.
But they refused as I have bad credit
Credit cards.
I connect ed financial adviser they can't help
Either. I will lose my flat any advice appreciated

csgohan4

What repayment vehicle did you have in place to pay off the mortgage???




Maybe one for a broker as you have poor credit.


If your unable to pay up your home will be repoed

Spirittiger

I had an endowment.
But cashed it in because mother was ill.

Spirittiger

Any idea for a broker please.?

haras_nosirrah

Do you have equity in the house? May there be enough to downsize to something mortgage free?

How much is outstanding, what is the house value, how old are you and approx what do you earn

Realistically you will only get another mortgage on repayment and that is if your credit is not bad enough to prevent you getting another mortgage.

The time may have come to sell and rent. You need to do this yourself rather than waiting to be repossessed as you will get a better price and avoid fees and having a repo on your credit record which may make renting difficult

Answer my questions above and advisors here may be able to give you an indication if it is doable to keep the flat

betmunch

The simplest solution is to remortgage onto a repayment mortgage.
However there isn't enough info in your post to say if that is possible.
Speak to a specialist adverse broker for a definitive answer due to your credit card issues

Spirittiger

My flat is worth £60000.
I owe18k on my flat.
I also have a secured loan on my flat.
I earn £16669.

Spirittiger

Could you suggest any please?

betmunch

Spirittiger wrote: »

Could you suggest any please?

I'm afraid not, just start with a Google search and then check for reviews of who you find

haras_nosirrah

So you have a small mortgage but you would have to roll in the secured loan too so depends how much that is and your age

May be options for you. Find a local broker and download your credit files and see what can be done

RADDERS

I wonder what would happen if you just keep paying the mortgage after the term has ended? I know people say that the property would be repossessed but I have yet to hear of a financial institution actually doing this, especially if there are no arrears.

Has anyone else heard of this actually happening not just threaten to be repossessed as I struggle to see how a judge would allow this especially with a small mortgage so there is not a great deal of risk to the institution of not getting the capital back when the property is eventually sold ie it would end up being a life time mortgage.