Interest Only Mortgage Term Ending

ACG

There are potential options, which could be equity release, that would eat in to your inheritance, but it means your parents get to stay in their homes until they pass or need to go to a care home. It also means there is potentially no money to pay for private care.

There may be more lenders who will go on indefinitely depending on their incomes, but they may want the mortgage on a repayment basis.

Depending on your circumstances, you may be able to buy the property from them using their equity (or some of it) as your deposit.

A mortgage broker, ideally one who is also qualified in equity release to look at all of the options is probably not a bad call.

Shaksb

Thank you so much for your advice. The full repayment is £192,000 between both the interest only mortgages. The house on valuation is about £370,000 but we do not want to sell due to my mothers disability. Ideally I would have transferred it in my name but I am not earning as much until I get a job earning more.

I have spoken to the lender they said unless you sort a repayment method for example paying 30,000 in 6 months then we may consider it but the lender may not agree.

We have adjusted the property to my mothers disability and it is a struggle to up and move. We discussed equity release to a mortgage advisor but apparently we are not eligible for it.

To be honest I am not worried about myself or any inheritance it is just the security of my parents for as long as they live being able to live in this property.

Thrugelmir

Shaksb wrote: »

I have spoken to the lender they said unless you sort a repayment method for example paying 30,000 in 6 months then we may consider it but the lender may not agree.

Unfortunately the onus is on the borrower to find the solution. Lenders have been writing to borrowers with interest only mortgages for some time now. To highlight the issue with no uncertainty. Those that leave it too late may well find lenders uncompromising. If there's been no attempt to address the issue even if only just in part.