Barclays Offset Mortgage - cannot redeem

exbanker

We have an Offset mortgage with the facility utilised and representing about 33% loan to value.

The mortgage is interest only on a low tracker rate. 

Life events mean that the funds that were to be used to redeem the mortgage no longer exist, although in five years there will be the money available. 

Scheduled redemption date is in two year's time. 

Current provable income would not be enough to support this size of mortgage again. 

Obviously the house could be sold before the term is up in two years , but this is far from desirable. 

The ideal would be to simply continue as is with the same facilities and interest rate 

Has anyone experienced this situation and had options given to them by Barclays?

Thrugelmir

If the existing product no longer exists or you are ineligible. Then it’s a straight no. There’s no negotiation involved. Just factual circumstances. Be prepared to sell the property. Though start talking to the lender now as time will soon pass. 

MWT

There may be other options than selling, but a lot depends on things like your ages, the source of the funds that will arrive in 5 years to solve your problem (pension lump sum perhaps?) and of course your ability to make any material reductions in the amount outstanding over the next two years.

Probably worth talking to an advisor about your options, including equity release (but may not be possible if the youngest life is too young as 33% usually requires minimum age around 62). Also equity release isn't for everyone, especially if you have a large cash event expected only 3 years after the end of the mortgage...

Many things to consider and all of them have pros and cons so you seem like a good candidate for advice.