Paying off the mortgage beyond the term

edited 12 July 2018 at 7:33PM in Mortgage-free wannabe
1 reply 525 views
DandayDanday PPR
436 Posts
edited 12 July 2018 at 7:33PM in Mortgage-free wannabe
I have an interest only mortgage that is due to expire in June 2020.
In 2015 I decided to take the bull by the horns and to start paying it off. The mortgage balance in 2015 was £101,000 and since then with regular 4 weekly payments of £500 and some substantial blocks of savings/investments I now have it down to £37,000.

Now that my savings etc have been depleted I will still continue to pay it down at the rate of £6500 a year which should leave the outstanding balance in June 2020 of £24,000.

The property is worth a minimum 0f £285,000 at todays value.
I do not want to do an equity release (I'm 69) as that means paying an interest rate some 3 times greater than the curremt deal.
Does anybody have any thoughts on what Barclays would do if the debt isn't settled on time?
At best I could continue to pay it off beyond 2020 but that would take just under another 4 years - 2024. If I did that would it keep the bank off my back?

Sorry I should have added that I absolutely hate speaking to the bank - they have a way of making me feel like 'Oliver'!!


  • greentgreent Forumite
    10.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    We have an IO mortgage that we're unlikely to fully repay by the end of the term - I'm planning on (although have not spoken to the lender about7 it at all) remortgaging the remainder over a max of 5 years at that time - I suspect it will be on a repayment basis then and at a higher interest rate, so I am doing my best to reduce it as much as poss (whilst still living a life!) in the meantime. My plan if they refuse (I can't see why, but who knows?!) would be to take out a personal loan to repay the balance over a similar time frame.

    I would have thought that your plan to repay the remainder over 4 years should be a reasonable enough one to Bclays - but would expect that they will make it on a formal repayment basis at that point and that the interest rate may be higher (although not at Equity release rates) I really can't see that it is worth their while pursuing any action hen you will have demonstrated a record of ability to repay at that rate and that the LTV will be small, the balance will be small and the remaining term required will also be small.
    I am the master of my fate; I am the captain of my soul
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