My Barclays Interest Only Mortgage Term Ends in January 2020

wroughtironron

I'm 64 and still working and plan to do so until I get to 67.


I have had an interest only mortgage for 19 years with Barclays, which ends in January next year, and I currently owe £21k, which I've been paying off at £500 per month plus interest for the last 18 months.


I got a letter from Barclays today, saying that I need to make arrangements to pay off the balance next January, or call them to make an arrangement.


I phoned them this evening to ask for a 2 year extension to my mortgage term (I've never missed any payments and have a great credit rating), and the call centre guy said that I would need to consult a motgage advisor. I will have paid the full amount off within 2 years.



I don't need a mortgage advisor as I have planned the payments - what do you think is my best option?


Cheers

Thrugelmir

Is that an internal mortgage adviser? Lenders are required to perform affordability checks. Unfortunately your word is no longer sufficient.

tacpot12

Speak to an internal Mortgage Advisor at Barclays and sell them on your approach. If they don't agree, speak to a mortgage broker to see if they can find a replacement mortgage, but I doubt they will be able to, although asking to borrowing £25K+ might work - you can always put the excess on deposit and use it to make overpayments.

An unsecured personal loan might be your option of last resort. One advantage of a personal loan is that there is much less danger that you will lose your house if you can't make repayments for any reason.

normanna

If you are advised to discuss your options with one of their advisers then you will need to do so. They are under no obligation to extend your term at all or even on existing terms. Remember, a nice soft approach will be best as you will have not complied with your terms and conditions and you are looking for them to help you out.

dimbo61

Keep paying the £500 every month without fail.
When they send you letters just tell them you are paying down the debt and hope to be mortgage free in X number of month.
If they can see you have made £4,5,6,000 worth of debt repayments over the last 8/10/12 months they would struggle to reprocess the property.

amnblog

If they wont extend the Term you should find they will let the case run if 'the property is on the market for sale'.

wroughtironron

Thanks all for the advice - I have £28k in a Mutual Wealth Investment fund which I could withdraw to pay off the mortgage, but because I earn £30k pa and also receive a pension of around £16.5k, I have to pay tax on withdrawals - potentially 40%?
What do you reckon?

Blackbeard_of_Perranporth

Talk to their mortgage adviser. Your obligation as it stands is to pay off the mortgage in Jan 2020.

ACG

I cant see them going through the repossession process when it is clear the balance will be cleared.

If all else fails, you could just go to Tesco/Sainsburys and take out a £19k loan to clear the mortgage and earn some clubcard points at probably a similar rate to the mortgage.