interest free mortgage ending in 7 years

TOOMUCHWORRY

We changed to a interest free mortgage in 2007, cashed in the endowment because that was the best advice we had at that time (husband very ill and we were in a very dark place emotionally and financially) Now 10 years on, we are debt free and our finances are manageable and over the past 8 months we have been able save £1000.00 a month into a savings account. .
Our mortgage is due to end in 7 years time and will be about £80k short of repaying the mortgage.
My husband will be retiring at 66 if his health can hold out that long. We would be able to downsize but would mean moving about 70 - 80 miles away so that is an options.
i would prefer to stay where we are as I have a job that I love and am 5 years younger than my husband. Do you think there would be any chance of the mortgage company extending our mortgage terms for 5 years (so that would mean mortgage ending in 12 years time, not 7). We would still have a shortfall to repay mortgage but could then move away and downsize, thus paying off outstanding mortgage in full.
I have spend years worrying about this.
I do know that there isnt a solid yes or no answer to this but just getting my thoughts written down is a bit of a relief
many thanks for any suggestions.

ViolaLass

Interest-only?

Are you using some of that £1000 a month to pay down the mortgage? You'd get the money back when you sell.

TOOMUCHWORRY

No we are just putting £1000.00 away in a savings account. It is earning more interest than our mortgage interest rate - lifetime tracker base rate + 0.69%.
I appreciate that this would be most peoples dream mortgage rate but until now we have not been able to save anything at all towards it.

TOOMUCHWORRY

Sorry just realised I meant interest only - not free!

ViolaLass

TOOMUCHWORRY wrote: »

No we are just putting £1000.00 away in a savings account. It is earning more interest than our mortgage interest rate - lifetime tracker base rate + 0.69%.
I appreciate that this would be most peoples dream mortgage rate but until now we have not been able to save anything at all towards it.

Fine, but can't you use that to pay the mortgage off at the end?

[Deleted User]

So, you've got £8k in the bank now, and if you continue to save you'll have at least another £84k in the bank in 7 years time (not including any interest).

So you'll have £92k - do you mean you'll *still* have a £80k shortfall after that? Is your current mortgage £172k?

TOOMUCHWORRY

Current mortgage is £155.000
I cannot guarantee that we will definitely be able to save £1000.00 per month for the next 7 years so I've sort of guesstimated what I could potentially put away over that time.

dunstonh

Convert to repayment basis and buy a new mortgage deal that extends the term at the same time?

TOOMUCHWORRY

My husbands retirement age is 66 when our current mortgage endsso would we be likely to a mortgage that extends past that ?
Also our mortgage is 'portable ' so does that mean if they do extend the term it will be at the same rate ,I.e base rate + 0.69?.
My husband just wants to sell and move in 7 years so we have a conflict of ideas. Also he would rather save in a savings account than commit to a repayment mortgage in case things for pear shaped again . For me the uncertainty of it all keeps me awake at night.

TBagpuss

Portable usually means that you can keep the same mortgage deal if you move house. It wouldn't mean that they have to give you the same deal if you extend the term.

To extend the term the lender would have to be satisfied that you could still afford it, so they would be looking at your earnings and any other income you have as a couple. Will your husband have a pension when he retires?

You might find it helpful to talk to a mortgage adviser (preferably an independent one rather than just your current lender), to see what options you would have now. They won't be able to tell you what might be able to access in 5 years time but should be able to give you an idea about whether a longer mortgage would be a possibility.

TOOMUCHWORRY

My husband will only have state pension when he retires and wants to move away and pay mortgage off. TBH healthwise that would be a good thing for him . He keeps telling me not to worry, it will all work out - easier said than done!
Thank you for all suggestions. It has helped to talk about it.