Interest Only Mortgage due to finish next year 2020 but there is no way we can pay it off

foxy-stoat

michieluc wrote: »

Between us we earn around £70K - however we both have credit cards which are quite high and not an excellent credit rating as we have had ccjs in the past.

What is the total unsecured debt? You may have to sell and rent and build up savings again.

RelievedSheff

phillw wrote: »

I would speak to Satander now about switching to a repayment mortgage.

That should have been done years ago when it was clear that the loan could not be repaid not so late in the mortgage term!!

Socajam

I was in similar situation to you, and realize that Id would have had to come up with over 13,000.
I remortgaged to repayment 10 years before the mortgage was to end, kept paying the endowment and a higher repayment mortgage.
In the end it worked out because at the end of the endowment I received over 47,000 and became mortgage free at the same time.
My sister and her husband did exactly what you have done - had to pay over 10,000 to clear their mortgage.
You obviously received statements annually showing how much of a shortfall there would be. I know for a fact that I did.
As others have said, it was all about planning.

Durban

What will your pensions be like?

Have you any pensions that will have a 25 % tax free lump sum that could go towards paying it off? As your husband is 59 , he will have access to any DC pension that he has and could take the 25 % tax free lump sum.

If you will have fairly decent pensions , can you take out a retirement mortgage ?

If you have paid off sum of the mortgage with pension lump sum , this should make the repayments lower.

[Deleted User]

OP is 59 and husband is 49.


Given she says she has to work another 7/8 yrs I would imagine there is little /no pension .


What a horrible position to be in

billy2shots

£70k a year.
£500 a month mortgage.
‘Quite high’ credit cards

All the evidence is highlighting lavish spending. Holidays, cars, clothes, eating out regularly etc.
The housing situation is a big problem and your time is short. However you must review and modify how you are living your lives or you will be in a financial mess forever. Be honest with yourselves or what next step you make will fail.

OldKidOnTheBlock

70+ old (young) couple (husband self employed) with Interest only mortgage (repayable next year) - £120k on a £400k property.  Would prefer to downsize say in couple of years but lender ignores earned income after 70. 
Other than downsizing now, any other options?  - somebody mentioned a Retirement Interest Only Mortgage 
(No lectures please on what we should have done 15 years ago) 

Thrugelmir

Difficult to suggest anything else other than downsize. Would the mortgage be affordable on just one salary, i.e. yours? 

MovingForwards

OldKidOnTheBlock said:

70+ old (young) couple (husband self employed) with Interest only mortgage (repayable next year) - £120k on a £400k property.  Would prefer to downsize say in couple of years but lender ignores earned income after 70. 
Other than downsizing now, any other options?  - somebody mentioned a Retirement Interest Only Mortgage 
(No lectures please on what we should have done 15 years ago) 

Easier to start your own thread as people will be looking to answer the original persons question and yours needs its own answers.

harvsl

A friend was in a similar position with Santander and phoned and asked them to extend the term, not expecting them to. They did, up to the oldest person turned 80.  This was about 2 months ago.  Not sure if corona will have changed things. If they extend it start overpaying asap. Good luck