Extending mortgage term

camlotte31B

Hi, can anyone give me advice about whether or not I can extend my mortgage term? We switched to an interest only mortgage several years ago. My husband passed away in 2017 with no life insurance. I am disabled, but am still able to pay the mortgage, the problem is that I won't have the means to pay back the mortgage when it matures in 8 years time. Does anyone know if the term can be extended past 65 years old? I really don't want to have to sell the property to pay back the mortgage.

Thrugelmir

If you aren't in a position to reduce the capital balance owed. How will you cope with an increase in interest rates should they rise. 

MWT

camlotte31B said:

..., the problem is that I won't have the means to pay back the mortgage when it matures in 8 years time. Does anyone know if the term can be extended past 65 years old? I really don't want to have to sell the property to pay back the mortgage.

There can often be options, but a lot depends on what plan you have to pay the mortgage at some point in the future...

Do you have a plan for that at all?

Not saying this is the answer, but one possibility might be that you intend to use equity release to pay off the mortgage for example... .. or perhaps a RIO to replace the current mortgage if you can meet the affordability criteria...

If there is no plan and you just want to move the end date further away the odds are you will have problems doing that.

Best to try and figure out a plan if possible. For example, how much do you think the house is worth and how much is outstanding on the mortgage?

... but if you don't want to share more details here (which is understandable) perhaps talk to the charity 'Step Change' and see if they can help you work through some possibilities...

camlotte31B

Thanks for the replies. The mortgage is large and at the moment I am in a 5 year fixed rate. At the moment there's about 150K equity. I will have to sell at some point, but would like to stay here as long as I can. Can I ask what an RIO is?