Interest only mortgage

Bedroom

8yrs after original 25yr term ended bank changed policy and said we couldn't continue to keep paying às agreed 8yrs ago.Without missing a payment for 8yrs and they now want redemption any advice

Caz3121

what was the plan to pay it off after the original 25 year term?
assuming a new repayment mortgage is not an option, sell and downsize

TadleyBaggie

8 years is generous, when my 25 year term was reached Abbey National gave me a few months grace to redeem.

SonOf

Bedroom wrote: »

8yrs after original 25yr term ended bank changed policy and said we couldn't continue to keep paying às agreed 8yrs ago.Without missing a payment for 8yrs and they now want redemption any advice

Extending the term after the initial period has ended (as in 25 years) is only ever seen as a temporary measure. It is typcally used by people whose endowment ran short and need an extra few years to get the shortfall or people who are selling and need time for that to happen.

It is not an open ended permission to borrow. At 8 years you really have extended it far more than most lenders would normally do.

So, now, you either need to remortgage and select a new term. Although interest-only is unlikely if you have no repayment vehicle. Or switch to equity release if you are old enough. Or sell your house.

csgohan4

Bedroom wrote: »

8yrs after original 25yr term ended bank changed policy and said we couldn't continue to keep paying às agreed 8yrs ago.Without missing a payment for 8yrs and they now want redemption any advice

As above you have been given good advice, paying on time and not missing them is not a reason to extend, it is part of your contract and therefore not rewarded as such