Question about part repayment part interest only mortgage

rosiedee

We have a part repayment part interest only mortgage that ends in just under 3 years. When we originally took the mortgage out my husband took out a pension plan which should have covered the original loan but it became apparent that wasn't going to come anywhere near paying it off. We are also making overpayments of the allowed amount without incurring penalties and also putting savings away but at the end of the term we will will probably have a shortfall of between £10,000 -£15,000. By then my husband will be 75 and I will be 72. We both get full state pensions and have both got small private pensions. Will we be able to get a small mortgage to cover the shortfall? We do intend to downsize at some point but don't want to rush into it.

Mortgage_Expert

Hi rosiedee, it may be possible to get a RIO (retirement interest only) mortgage for this small amount. Leeds BS offer such a product at the current time, allowing you to make overpayments to reduce the capital sum. An equity release product may also be a solution, depending on your circumstances.