Mortgage term ending

heidiprincess13

Hi all. My mums mortgage ends in July 2018 and she will owe just under £60,000. (Repaying interest only)

What are her options as she is worrying about this. She is 79 years old.

The mortgage was in her and her husbands name. Unfortunately he died 10 years ago and she has not informed them as she was worried she would lose her home.

What will happen in July? Will they make her move, sell? Will hey extend the term?

She is not in good health as it is and this is a huge worry

ACG

I am assuming no repayment strategy in place?

Who is the lender?
How much is her home worth?

heidiprincess13

No repayment strategy

Lender is TSB

Home is worth £400,000

kingstreet

So she's carried on paying the interest for the last ten years?

What's the current rate?

heidiprincess13

kingstreet wrote: »

So she's carried on paying the interest for the last ten years?

What's the current rate?

I'm not sure, it's just the interest being paid, just wondering what her options are next year as there will be about £50,000 outstanding???

She is so worried and I'm stuck on where to go for help

National_Debtline

Hi Heidiprincess,


She could talk to the lender about extending the term. They are unlikely to do this as a formal re-mortgage as your mum has already gone past retirement age, however they may consent to extend the term informally for a short time.

She could look into possible equity release, but it would be important for her to get some independent financial advice about the benefits and risks of this. She could also see if a family member was able to re-mortgage the house in their name and then let her continue living there; but she would've effectively sold the house to them so she would need legal advice on this. And the last option is to sell.


I appreciate that is something she wants to avoid but the mortgage is due on the date the term expires. If she does not have this money then the bank can take repossession action. Most banks are understanding in these situations and give people some flexibility with time, but that is at their discretion. Good luck,


Laura
@natdebtline