Mortgage deadline coming up

smokey11

Good afternoon

We took out a £300k interest only mortgage on our £330k home in 1999 as monthly repayment mortgage terms were too expensive at the time. Over the years, I have religiously overpaid each month and the mortgage balance now stands at £139k. Our mortgage repayment deadline looms in a little over 18 months and at 72 (my wife is 69) we are looking for the best alternative to carry us through for the duration. We do NOT want an equity release programme as that option appears to be a bit of a minefield and we are aware that recent legislation has improved our chances of borrowing as older homeowners.

Can anyone give us a steer, either to a repayment option that won't expire before I do or continued interest only options meeting the same criteria?

Many thanks

ACG

You would need an income (combined) of around £35k - maybe more, maybe less, but much less and I think your only option would be to downsize or equity release.

There are lenders out there, with a bit of looking online you would probably find a couple, alternatively you could speak to a broker.

As a side note, I used to avoid equity release like the plague after reading all of the horror stories. The market has changed completely, and there are options which would allow you to carry on making interest only payments or even over pay to bring the balance down. I do not do equity release personally, but I would not dismiss it outright. It might not be of any use, but it ca be quite flexible and there are reputable companies invovled now, L&G, Aviva etc.

smokey11

Thanks, ACG

Income should not be a problem. I have a pension of ca. £72k annually.

Would it be worth my while to approach my current lender (Woolwich) for an extension or go shopping elsewhere? My wife goes ballistic whenever the term "equity release" is mentioned, so I think that's a bit of a non-starter.

ACG

smokey11 wrote: »

Thanks, ACG

Income should not be a problem. I have a pension of ca. £72k annually.

Would it be worth my while to approach my current lender (Woolwich) for an extension or go shopping elsewhere? My wife goes ballistic whenever the term "equity release" is mentioned, so I think that's a bit of a non-starter.

Tell her you have found come across lifetime mortgages Same thing(ish), different name.

I do understand your concerns about them, my nan was looking at them back when they were dodgy and we tried to talk her out of it. As it happened the person who bought hers knew her and was a decent bloke and it all worked out but I know she was one of the lucky few. But now a days it is mostly reputable companies.

There is no harm asking Woolwich/Barclays. But I think it is mostly smaller regional buildig societies who are filling the gap for this sort of thing.

Thrugelmir

smokey11 wrote: »

Income should not be a problem. I have a pension of ca. £72k annually.

And your wife? In the worst scenario.

How much money could you find to significantly reduce the debt owed, i.e. from savings and income. 19 months is still a reaonable length of time to make inroads.