Mortgage Shortfall

delishjo

Hi,
I am 53 in June, my mortgage ends in June 2019. However, Because of having part of my mortgage on an endowment I will have a £37,000. I will have to work until 66 anyway but should I start looking for a new mortgage this year or next? I don't have a very good credit rating so I'm worried I might not even get a new mortgage. Should also say that I can't convert my existing mortgage to a repayment with my existing mortgage lender because it was Northern Rock which was bought out by Whistletree and they are only handling existing mortgages, not taking on new ones.I am so worried about the situation that I'm like a rabbit caught in headlamps. I can't seem to make a decision as which way to go.

minimike2

Better to start looking to sort it out sooner rather than later.

enthusiasticsaver

change it to repayment and ask to extend the term. Hopefully as you have had your mortgage all these years they will approve it. Do it now.

AnotherJoe

And start sorting out whatever the issue is with your credit rating.
Why is it "poor" and what does that mean ?

the_storm_fisherman

i have just had the same situation with lloyds on an old cheltenham and gloucester joint mortgage they were more than helpful to rearrange to new 15yr repayment more interest for them. The only stipulation is to have the new mortgage in place before my 53rd birthday in August because of retirement dates. You may also come across this problem so it should not be too difficult to a new mortgage if any indication on how my finances have been over the years.

delishjo

I can't use existing mortgage company unfortunately. Northern Rock which was bought out by Whistletree and they are only handling existing mortgages not taking on new ones.

delishjo

It is poor because I have no credit. No credit cards, no loans, no overdraft, nothing. Which I find ridiculous.

delishjo

I can't use existing mortgage company unfortunately. It was Northern Rock, which was bought out by Whistletree and they are only handling existing mortgages not taking on new ones. But thank you for that, I will start looking around for another lender asap. I'm not actually 53 until June so I have a couple of months.

enthusiasticsaver

Does that mean Whistletree won't alter terms of existing mortgage? You are not looking for a new one as you already have one. You just want to change method of repayment from interest only to repayment and extend the term from 2019 up until your proposed retirement date assuming of course that you can afford the repayments.

Your credit is not poor because you don't have credit. You have a mortgage and a bank account presumably and a salary? Do you have a mobile phone contract? Go to a mortgage broker who specialises in people with poor credit rating. I seriously doubt though that your rating has anything to do with you not having overdrafts or credit cards. Have you defaulted on the mortgage or utilities/phone bills? Have you had any CCJs or DMPs in the past?

tori.k

That shouldn't be a problem I had the same issue i've never been one for credit I don't even own a mobile phone, they made me jump through a few extra hoops with extra payslips and P60 but had no further issues.

AnotherJoe

delishjo wrote: »

It is poor because I have no credit. No credit cards, no loans, no overdraft, nothing. Which I find ridiculous.

Have you made moves to get a credit card and start using that to build up a financial record?