Interest Only Mortgage Term Ending

Shaksb

Hello,

I am trying to find information on how we can prevent selling our house which has 2 interest only mortgages on one property the first one which is the small amount ends in May and the large amount in 7 years time, but we are unable to pay the £30,000 upfront. My father is in his 70s retired and my mother in her 60s who is disabled and has had the house altered due to her disability.

We have seeked advice from citizens advice burue, local council, MP and christians against poverty but no solution is becoming available. Could anyone give us any advice on how we can still stay in the property?

zagubov

Hopefully some posters will come along with some precise advice. You'll have to out up with a few pedantic types who'll say "just use whatever financial vehicle you set up to pay off the capital".

It would probably be wise to put as much detail here about all occupants and their financial comings and goings without making their identity obvious to outsiders.

Joe_Bloggs

It is a tragic state of affairs to be so close to owning a property outright for the earning power to fade away.

The pensions system is predicated on a predictable rate of return for eons into the future. The future has eventually caught up with the forecast to the present day reality.

Consider selling before you are forced to sell unless an in-family property switch.

J_B.

AnotherJoe

OP Do you own or live in this house, and do you own another?
How much equity is there in your parents house ?

csgohan4

Don't put yourself in trouble too for your parents. Your parents are adults too and they chose to have an interest only mortgage and pay later. Unfortunately they had no payment vehicle and are now liable for this.


It seems you have gone through the political as well charitable route, but have found nothing. Unfortunately a contract is a contract, if you don't pay up regardless of current disabilities they can repossess their home.


After all banks are not charities and they must be fair to all which they are, they gave your parents x amount of time to save up to pay it all off.

Keep_pedalling

Depending on how much equity there is in the property, this may be one of those situations where equity release should be considered.

amnblog

You seem to have done the rounds in terms of advice with the exception of the one person who may have the knowledge you seek, a mortgage broker.

If your parents have good equity in the property this issue can be solved easily.

Thrugelmir

Have you spoken to the lender concerned?

Is it possible to spread the repayment of the £30k over the next 7 years? Possibly with a lump sum payment down now.

Sounds as if you live in the property as well. Could you not assist financially as well. By contributing some "rent".

brit1234

zagubov wrote: »

Hopefully some posters will come along with some precise advice. You'll have to out up with a few pedantic types who'll say "just use whatever financial vehicle you set up to pay off the capital".

Sorry but the main way to pay off a residential interest only mortgage is with their repayment vehicle they set up when they took the mortgage out. If the mortgage has been fraudulently required zagubov we should not have people defending/appeasing criminality on a public forum designed to help people. Yes give advice but don't try to silence law abiding thought.

zagubov

I don't suspect criminal activity, unless you know more about this situation than I do. I've seen people take out endowments when taking out mortgages and having significant shortfall despite thinking they were receiving good advice, so I'm not going to wag a finger or accuse the OPs relatives of any fraudulent intent.

I merely suspect that someone's financial situation may have spiralled out of control by means of unforeseen events and I don't want to dwell on whatever personal misfortunes may have led to this pass.

I would therefore encourage positive steps to be taken as suggested by helpful and sympathetic posters on this thread.

silvercar

zagubov wrote: »

Hopefully some posters will come along with some precise advice. You'll have to out up with a few pedantic types who'll say "just use whatever financial vehicle you set up to pay off the capital".

It would probably be wise to put as much detail here about all occupants and their financial comings and goings without making their identity obvious to outsiders.

If you build it, he will come

brit1234 wrote: »

Sorry but the main way to pay off a residential interest only mortgage is with their repayment vehicle they set up when they took the mortgage out. If the mortgage has been fraudulently required zagubov we should not have people defending/appeasing criminality on a public forum designed to help people. Yes give advice but don't try to silence law abiding thought.

Typical response of someone with a political agenda.

Many options open, changing to a repayment mortgage; equity release; remortgaging with existing or new lender; family buying in to clear the mortgage.......