Interest Only Mortgage coming to an end

Thrugelmir

jacquie3167 wrote: »

Thanks for your help.

A valuation was done approx 4 years ago and it was worth £650k

Well at least there's equity. Which will provide options in the future. Suggest that an LPA is obtained in any event. To avoid unneccessary complications.

Is your partner still living in the property?

LRmortgage

There was 450k equity in the property 4 years ago, potentially more by now even with prices coming off a little this year.

Sell the house ASAP, down size to a place with a smaller mortgage or none at all.

cado1

Firstly you need to get to the bottom of how his mother got the IO mortgage in the first place.

Post financial crisis rules were tightened around having a viable repayment method what did she say was the repayment method at the outset ? When was the mortgage taken out, this is important as the borrowers could be classified as "mortgage prisoners" given the IO facility.

In March the FCA reclassified retirement interest only (RIO) mortgages to become standard regulated mortgages not equity release. The difference is that RIO does not allow roll up of interest it is essentially an interest only mortgage which carries on until a life event occurs such as moving into full time care or death. Since the FCA reclassified RIO's many lenders have brought products to the market and many are available from age 55. They all have different criteria an mortgage adviser would be able to advise on this.

I would suggest once legal ownership of the property is confirmed you make an appointment with a mortgage broker who can complete a fact find and then provide some options.