Interest only mortgage

dawn_turner348

I have an interest only mortgage with less than 5 years and no chance of being able to get a new mortgage or paying back the existing mortgage. I have no idea what I can do :eek:

[Deleted User]

What do you want to do?

Sell?
Pay off the debt?
Continue on interest only?

foxy-stoat

Sell now or in 5 years time.

dimbo61

So start paying down the mortgage
Every penny Helps!!!
You need to check with the lender simple ask "can I overpay my Interest Only mortgage".
Most allow 10% each year.
Pay what you can and see where you are in 5 years

smitchy73

dawn_turner348 wrote: »

I have an interest only mortgage with less than 5 years and no chance of being able to get a new mortgage or paying back the existing mortgage. I have no idea what I can do :eek:

Why would you have no chance to get a new mortgage or paying back. I'm no expert, but recently spoke to a broker, thinking that I was wasting their time with affordability as had already been rejected by current mortgage lender two years ago when we tried to turn the IO part of our mortgage to full Repayment, intertestingly our current lender was offering shocking rates and the broker double checked these and got us some great deals.
Help is out there.

yksi

What was your original plan for the expiry of the loan?

I'm not being facetious here; I know you're certainly not alone in what you're facing, but in theory, people are supposed to have an investment plan or some lump sum due in, with which they'll pay out the mortgage. Did something not work out, did you have a change of circumstances? I ask because interest-only mortgages don't suddenly jump out of the shrubbery, you've known this would be an issue for many years so I'm curious to understand why it's suddenly causing panic stations.

Beancounter1

Dawn - google for a local independent mortgage advisor who doesn’t charge for a meeting and take their advice