The end of an Interest Only mortgage?

debtcruncher

Hello

Here is my situation;

- 60 years old
- £200k interest only mortgage (Santander)
- expires in 4 years 
- Home worth approx £400k
- No endowment to cover

So I was wondering if I did absolutely nothing at the end of the mortgage term, would Santander move to repossess the property immediately?
Given my age and earnings I have no hope of securing a mortgage anywhere near the level required to continue living there, so I am obviously resigned to selling before the end of the term, but would like to know whether in anybody's experience lenders have extended the mortgage period beyond the term?

Many thanks
Jez

Thrugelmir

debtcruncher said:

So I was wondering if I did absolutely nothing at the end of the mortgage term, would Santander move to repossess the property immediately?

Perhaps not immediately but in due course. Did you ignore the warning letters sent to you a while back and failed to respond as to how you intended to settle the debt. 

Edi81

Considering you’ve been a member on this site for 8 years you are only now asking about this????

surely Santander have been sending you letters about the impending repayment….

tacpot12

No experience of this, but given your age I doubt they would extend it, and I don't think doing so sounds like a good idea. Using the next four years to improve the property so that you can sell it easy for the best price would seem to be the best idea, then have fun chosing your new home. 

MovingForwards

Sell it or retirement mortgage are your options. There's been a few similar threads posted on the mortgage board lately, it would be worth a look as members have gone into a bit of detail.

MattMattMattUK

debtcruncher said:

Hello

Here is my situation;

- 60 years old
- £200k interest only mortgage (Santander)
- expires in 4 years 
- Home worth approx £400k
- No endowment to cover

So I was wondering if I did absolutely nothing at the end of the mortgage term, would Santander move to repossess the property immediately?
Given my age and earnings I have no hope of securing a mortgage anywhere near the level required to continue living there, so I am obviously resigned to selling before the end of the term, but would like to know whether in anybody's experience lenders have extended the mortgage period beyond the term?

Many thanks
Jez

They would not move to repossess immediately, they would attempt to communicate with you first and then get you to try and sell, but depending on your responses, or lack of them, then they would move to repossess after a period of time. If they repossess it will cost you a lot more so it is inadvisable to force their hand. 

You are very unlikely to get another interest only mortgage and in reality an interest only mortgage means you have been living on borrowed time anyway. A retirement mortgage may be an option if your retirement income in high enough, otherwise it would be moving to somewhere you can buy outright from your equity. 

PaulW922

You need to take some advice. There are specialised financial products you could potentially use to pay Santander such as a lifetime mortgage, but it depends on a lot of factors. Find a mortgage professional who specialises in this area to help you. 

[Deleted User]

@PaulW922 You're replying to a 3 month old thread where the poster made just 1 post and didn't return to acknowledge the replies already given - unlikely you'll get a response either.