Interest Only ?

SavingSteve

I would seriously suggest talking to a broker, you will need another lender, Santander are too main stream to offer what you want.

Before you speak to your broker have the following to hand:
i) Details of this policy you speak of which you feel will pay off the mortgage in x years
ii) Information on whether any of this is variable in nature (i.e. is it linked to stock market performance, or is it a fixed return)

Based on the above you should be able to demonstrate to a lender (note NOT a run of the mill high street lender) than you have a repayment plan in place.

Expect to pay higher interest rates than Santander would offer you, but overall repayment should be lower than a repayment mortgage.

Would strongly recommend taking control of this, you DO NOT want this going to the courts, it will not end well, regardless of how reasonable you think you are being.

Caz3121

Limited111 wrote: »

How does that work then if the lender says they don't do interest only ?

SMI pay interest at a set % and you would still need to pay the repayment part if the lender will not accept interest only
How do the figures compare...eg if you were not paying the interest part yourself, would the money you would be using the interest cover the repayment element?
After 2 years they would expect you to be in a position to make the payments yourself or sell up

patchwork_cat

Some interest only will accept downsizing as a repayment vehicle if you can clearly demonstrate that it is viable, but they won't take pension lump sums etc. I used to be very wary of interest only, but tbh in certain circumstances I think it is a good option as long as you are not naïve and understand the situation.

beecher2

You could contact Housing Rights if you feel you need advice
http://www.housingrights.org.uk/free-mortgage-debt-advice

Give us a call on 0300 32 30 310 and one of our specialist mortgage debt advisers will try to help you keep your home. Your adviser will:

explore all the options available to you
help you to work out a household budget
help you put together a realistic proposal to your lender, or the courts, which is affordable.

Limited111

Thank you all.

I met with a broker and contacted the Housing Rights on above number. As expected & said here there are no interest only deals & as my policy is a pension fund can't be considered as a payment plan. Obviously my intention is to get work as soon as possible but as stated previously will be on a lower wage so I'm now asking if anyone knows anything about getting the mortgage extended & would it make much of a difference (this is based on being back in employment) I currently have 12yrs left, taking me up to 64 old. What are the chances of getting it till 70 or 75yrs of age. My current monthly payments are £690pm.

Appreciate all your comments/advice.

tlc678910

I feel for you OP and I know that you want to look after your family but I think you need to ask them now what they can do to help you. After all it sounds like as young adults they have been living for free(?) on your goodwill.

Have a family meeting and explain that if you want to hang onto your family home these young adults are going to need to step up. If they could work towards giving you £50 a week each you would have £600 towards your £690 mortgage payment. As you expect that when you get new employment it will not pay what you/they have been used to you expect to continue to need them to contribute.

I used to work three 5 hour shifts at a local grocery store (fri, sat and Sunday evenings) and receive £400 a month. That kind of job and income would be half to you and half for themselves (perhaps they could also put towards shopping and bills). Students that move out of home would have to pay a lot more.

I'm sure your home means as much to them as it does to you and if asked they may surprise you at what they can do to help. As we are currently in the summer any chance of any of them deferring their studies and taking a year out to work and get you all back on track?

For your own part if you are concerned about covering a £690 mortgage when you are back in work it suggests to me that your family can't be giving you much help?

Tlc