lifetime mortgages

peter_allen

Hi, I am one of the sad mis-informed people who have a interest only mortgage with a sum that I will never be able to pay back (approx. 67% of house value). Now as I have just passed 65 years old and have only another 4 years left to end of term, I am looking for a way to sell house and rent back, hopefully with security and not loosing too much of house value. Any advice gratefully accepted.

Peter

AnotherJoe

Is the 33% worth enough to buy a smaller house? As that's most likely your only chance.
Unless you have a large pension but that seems unlikely or you wouldnt be making this post.

peter_allen

Thanks, but 33% not enough to buy.

dobymicks

You may find sell and rent back works better for you than trading down.

You can find some information here

dunstonh

I am one of the sad mis-informed people who have a interest only mortgage with a sum that I will never be able to pay back (approx. 67% of house value).

What part of "interest only" did you find difficult to understand?

I am looking for a way to sell house and rent back, hopefully with security and not loosing too much of house value. Any advice gratefully accepted.

As your title says, that would be a lifetime mortgage.

Giddykipher

dunstonh wrote: »

What part of "interest only" did you find difficult to understand?.

Is it necessary to be so cutting with the OP? He has come here for help and advice, not judgement. I would hate to think that my father was worrying himself over something like this and a complete stranger made him feel even worse.

There are varying levels of intelligence in the world, we don't all have the wisdom of Einstein!

dunstonh

Giddykipher wrote: »

Is it necessary to be so cutting with the OP? He has come here for help and advice, not judgement. I would hate to think that my father was worrying himself over something like this and a complete stranger made him feel even worse.

There are varying levels of intelligence in the world, we don't all have the wisdom of Einstein!

it was the op that said he was misinformed. So, that opens that particular avenue of discussion. It will be interesting to know why the op failed to understand two words ("Interest Only") as a lifetime mortgage is a more complicated product. If you cant understand interest only then going into an alternative more complicated arrangement may not be the best course of action.

And for the record, I asked a question. I made no judgement. It was you that jumped to that assumption.

d70cw6

doesnt interest only mean you only have to pay the interest, but you get the house for free?

AnotherJoe

dunstonh wrote: »

As your title says, that would be a lifetime mortgage.

I don't see how that would work.
1. Not enough equity to get one.
2. Almost certainly the mortgage co will want their money back when that ends (grater than extending it) That's not going to come from the equity since the mortgage is 2x the equity.

I don't see the OP has any option, unless he has a really big pension, than to sell up and rent.

OP what is the house worth and what is your income.

dunstonh

AnotherJoe wrote: »

I don't see how that would work.
1. Not enough equity to get one.
2. Almost certainly the mortgage co will want their money back when that ends (grater than extending it) That's not going to come from the equity since the mortgage is 2x the equity.

I don't see the OP has any option, unless he has a really big pension, than to sell up and rent.

OP what is the house worth and what is your income.

Basically, the equity release would pay the existing lender.
I have read the 67% as loan to value. That is on the high end of things and would eliminate a good number of providers as you say. Although there may be some savings or time left in work to build up some savings to bring that down to a level that would be possible.

AnotherJoe

But how can the equity release pay off the loan when the loan is 2x the size of the equity? I've read the OP as owing 67% of the value on their IO mortgage.