Mum and Dads interest only mortgage ending

gj373

rrumjen wrote: »

I have a a slightly similar problem as your dad. My mortgage was its end of term last June. I have always paid the mortgage which is interest only. Never missed one single payment in the past 25 years. When I first took out the mortgage, I had assume I was paying capital and interest. The broker messed up and I didn't found until many year later. I had issues with the lender with my monthly payment and then the refunded a few thousands pound for overpayment. Thereafter, after a few years/months, we found out that they were treating is as tenant in our own house. Again, we wrote and told them that this was our main residence and that we weren't tenant. It has been an absolute mess. I am 72 years old and my wife is 68. I have assets that will pay off the mortgage, but the asset also provide me with a comfortable income. If I were to pay off the mortgage and pay off the mortgage, I will be left with no income but my state pension of £168 per week. I have asset abroad under construction which will bring a guaranteed income of around £3000 per month. However, this will be fully operational in the next two years. Once the villa is fully operational, I will be able to sell my properties here to clear the mortgage. I have asked the lender for an extension but they have refused. They have suggested a capital repayment option which is beyond my means. I have a very good credit record. We simply don't know what to do.
I know that it will be difficult for the lender to apply to the court for repossession. By the way, the value of my property is £475000. The amount owing is 211000.
I also believe I might have a case against the lender for Messing up my mortgage for the past years. We only found out we were bing treated as tenant a few years ago. We have a combined of around £31000 per year.
I would really appreciate if anybody out there can advise me.
Thanks

How is capital repayment beyond your means if you have enough current assets to pay off the mortgage?