alliance & Leicester mortgage maturing

suzisuzz13

Hi all, we have an interest only mortgage which we got through A&L now transfered to Santander which matures on 1st Aug 2019 with an outstanding balance of £63,796.79.
They tell me I cannot get a deal with them and must sell or face repossession, we both work and are 57 respectfully so have up to 10 yrs of working life to remortgage,
What can I do x:(

silvercar

I thought there had been some guidelines on age discrimination recently. It may be that your mortgage lender had expected that you had a repayment plan (endowment? pension lump sum? Savings plan) in order to clear this mortgage and is now expecting you to use that to clear the mortgage.

It may be that you need to find a mortgage with a different lender.

Is your current mortgage interest only or repayment? How do you expect to clear the balance?

ACG

Interest only is the issue.

There are lenders who will do it, but most have strict criteria. You need to find a new lender, switch to a new product, speak to a broker or (not wanting to sound like a smart !!!)...what was your plan to clear the mortgage in 2019? Can you not use that?

suzisuzz13

We have no plan in place and was thinking if I can get the mortgage moved to another lender, as we are in a position now to pay 800 a month, do I need to tell santander that I'm looking into a transfer of mortgage x

frazell

If there is no plan in place to pay off the mortgage, and assuming you want to stay in your house and not downsize, then the sooner you act the better.

Have you discussed with Santander if they will move you over to a full repayment mortgage? They might even do that now for you subject to affordability?

If you can afford £800 per month then that should be doable with 10years working left between you, again, assuming you pass affordability etc.

It might be best to engage with a broker to assist you with your options and the costs (if any) of your next steps?

Thrugelmir

Santander aren't going to make a decision this far ahead. With 2 years to run. Start overpaying the mortgage and reduce the debt owed. Then you'll at least be showing intent. That may open up options in the future.

There's an old Chinese proverb. "A man who wishes to move a mountain starts by moving the smallest stones first".

Focus on what you can do, i.e. find savings (however small) in your budget with which to pay more off the mortgage as soon as possible. As savings in the interest charged will be be self generated through compounding.

At the very least building equity will provide you with something on which to base your retirement.

suzisuzz13

Thank you all for advice, I have started an extended time on the mortgage, so fingers crossed it goes through, xx

TrickyDicky101

Thrugelmir wrote: »

Focus on what you can do, i.e. find savings (however sm future.
all) in your budget with which to pay more off the mortgage as soon as possible. As savings in the interest charged will be be self generated through compounding.

At the very least building equity will provide you with something on which to base your retirement.

^^^ This - if you can afford to pay £800 per month (is this in total or in addition to your current mortgage payments?) then I would so now - you should be able to make overpayments against your current balance and that will reduce the amount owing at the end of your term in 2019. This in turn will make it easier for you to obtain a repayment mortgage product (as you will need to borrow less) in 2019. You will save interest paid/payable. Win-win!

haras_nosirrah

why not remortgage to another lender on repayment now?

frazell

Just to clarify my comment above. I did have a part interest and part repayment mortgage with Santander and I simply asked them to move it over to full repayment which they did subject to affordability.

Overpaying is definitely the best option to get things moving along. If you are saying that £800 is affordable now then you really should be looking to pay the maximum you can rather than "kicking the can down the road".

Personally I wouldn't have extended the term on the mortgage as you've said its affordable now, so why increase the length of borrowing?

If you overpay, you can opt to keep the term the same and reduce your monthly payments. If you therefore get into difficulty in the future your payments will be less per month as a result.

suzisuzz13

It was interst only I was paying over that though, so extended for 10 yrs as it matures 2019 x