Interest only mortgage

kathya

Hello, I'm hoping someone on here can steer me in the right direction. My partner and I have been together for 20 years and we are now in the process of making our wills. The property that my partner and I own is only in his name and is interest only. it was originally set up like this as I had another property and we planned not to keep it indefinitely. Our situations have now changed and I need to add my name onto this mortgage as I am concerned that if anything happens to him that his daughter will inherit the equity as we are not married We endeavour to pay this mortgage off as we are paying more off it each month than the interest. LLoyds bank have told us that I cannot be added onto the mortgage now as the rules changed in 2010 and that we will have to go onto a repayment mortgage. So if we make a will and he wills it to me where does that stand with the outstanding mortgage if there is one still in place.

Originally we were told that I could add my name onto it for a fee but we have been given the run around now and we are unsure what we should do. Any advice would be greatly appreciated. Thanks

Thrugelmir

kathya wrote: »

So if we make a will and he wills it to me where does that stand with the outstanding mortgage if there is one still in place.

The estate will need to discharge the debt. The obvious choices being you remortgage the property into your name or you sell it.

What are the plans to repay the mortgage? As time is running out for finding a solution to the mortgage debt which will need to be repaid.

kathya

Hello, thanks well the plan is to continue overpaying the mortgage as we have another 9 year left to go. So we plan to continue with the overpayment. I'm just concerned as we are not married and I am not on the mortgage if something happens to my partner where do I stand?

Thrugelmir

Your partner can divide the equity in the property via their will in whatever share they wish.

TrickyDicky101

What's the outstanding mortgage balance, monthly mortgage cost, and amount you are overpaying?

Are you on target to repay it in 9 years?

Are you both working? If so what are your incomes?

In theory, if your monthly payment + overpayment amount will repay it in 9 years then you could potentially remortgage to a repayment for the same length of time (subject to affordability). Not saying this is necessarily a good idea, but it might be an option to get you added on a joint tenancy.

I think you have a valid concern re the wills. Wills can be challenged (or changed). Joint ownership gives you more security over your home.

Silvertabby

Is there any reason you can't get married? I know some people only see marriage as a 'bit of paper' - but it would give you the extra security you seem to be concerned about.

kathya

Hello its 109k and we plan to have it paid off in the 9 years. Currently paying 600 now per month but after Christmas plan to make the payments up to 800. That will leave a little to find at the end but not an extortionate amount and we believe that it can be done. We have decided to get married next year and leave it as it is. I'm still unsure what will happen if he dies before me as the mortgage will be in his name. I'm assuming if the will says that he leaves it to me then I can pay it off with the life insurance payment?