Panicking about mortgage end date approaching

Karenh36

Hi,
I am 20 months off the end of my mortgage term, 8 years ago we hit hard times financially and health wise so I rang my mortgage company (lloyds) and changed my repayment mortgage to interest only. We have only now started to get on our feet and are fine financially. My problem is our mortgage is around £50,000 and 20 months left on the term. I am panicking, anxious, stressed thinking they will repossess my house as there is no way I can repay that amount in 20 months. I rang them a few years ago but they didnt discuss what would happen just told me to overpay what I could!. Can anyone give me advice, can they repossess just like that? I dont have a good credit rating and I dont want to lose my house which is valued at £220,000. Sorry if this is a bit garbled I'm just really worried.
Thanks 

Lomcevak

Ok, you need to call them to discuss extending the term and switching back to repayment, don't ignore it any longer, but first prepare a budget so you know what you can afford to pay and what term you will need. The budget needs to be realistic, no sense in coming up with a plan that's unaffordable or unsustainable. Equally, you need to balance the term with retirement plans, if that's relevant. I know it is a worrying call to make, but keep calm, take it slowly, take notes, and if it's becoming confusing or you're feeling overwhelmed with information then you can ask to stop the call and pick it back up later.

They aren't guaranteed to extend the term, so in the event that they say no, you'll need to remortgage. If your credit rating is poor then a mortgage broker can help find an appropriate deal, see the adjacent mortgages & endowments board, but the good news is that your loan-to-value is low and as long as your budget shows a mortgage is affordable then i'd imagine you should find something. 

longway2go

Also remember that the banks have to be seen to help people in times of financial hardship and support you when they can. 

Karenh36

Lomcevak said:

Ok, you need to call them to discuss extending the term and switching back to repayment, don't ignore it any longer, but first prepare a budget so you know what you can afford to pay and what term you will need. The budget needs to be realistic, no sense in coming up with a plan that's unaffordable or unsustainable. Equally, you need to balance the term with retirement plans, if that's relevant. I know it is a worrying call to make, but keep calm, take it slowly, take notes, and if it's becoming confusing or you're feeling overwhelmed with information then you can ask to stop the call and pick it back up later.

They aren't guaranteed to extend the term, so in the event that they say no, you'll need to remortgage. If your credit rating is poor then a mortgage broker can help find an appropriate deal, see the adjacent mortgages & endowments board, but the good news is that your loan-to-value is low and as long as your budget shows a mortgage is affordable then i'd imagine you should find something. 

Thank you so much for your reply, I will ring them today, I think I just panic at the thought I might lose my home but I'll get a financial budget together first and 🤞 thank you again I appreciate it.

Unicorn_cottage

@Karenh36 - best of luck! Let us know how you get on.