Interest Only..What Might The Mortgage(Santander) Company Suggest??

Mustbeananswer??

Hi ...what would be the best course of action please??

September 2024 my interest only mortgage comes to repayment time...I have 61k to find.(I have only 20k savings)

I live alone...my Fiancee lives in the same village...she has OCD...it wouldnt work us living together.


I bought the house 2009 for 60k....its two houses knocked into 1.Houses are doing really well round here at the moment I guess there is 80k equity in it.


Selling is an option and downsizing....but not really my first one.


I am only paying £108 a month for the Mortgage atm....which is a great deal....I am conscious interest rates may change shortly.


I am quite fit and enjoy working at 63...I think I will continue working in some form.


Does anybody have any idea what the mortgage company might suggest to me please 


 

[Deleted User]

as long as you are working and have income to support a mortgage some lenders will allow an IO mortgage to go to 75.  Santander will go to 70 so you could extend it.  
Otherwise lifetime mortgages are an option if you never want to repay it

Mustbeananswer??

Deleted_User said:

as long as you are working and have income to support a mortgage some lenders will allow an IO mortgage to go to 75.  Santander will go to 70 so you could extend it.  
Otherwise lifetime mortgages are an option if you never want to repay it

Thanks....thats a great help....would a State Pension and variousWork Pensions be enough to qualify as Income please Deleted_User ??

[Deleted User]

depends on what they add up to.  You can self declare that you will continue working until the age of 70 with Santander.  They only look at pensions if you say you want a mortgage to 70 but will stop working at 65.   
If you need to use pension income then stick it in the calculator on santander for intermediaries and see what comes out. 

If you want a lifetime mortgage then your pensions will be assessed and your work income ignored. In this case you can borrow around 4.49x your total pension income.  

Might be worth speaking to a broker. The best thing you can do at the moment is to sort it out before the lender calls the loan in.  Time to make decisions is very valuable

getmore4less

2y 9 month to go

£108pm on £61k  2.125%

Repayment would be £1900pm 
pay off £20k and that drops to £1,280

Repayment over 7years(just 63)  £782 and £525
Repayment over 6years(nearly 64)  £900 and £600

How much could you afford to eat into the debt.

Are you drawing any pension.
I think your state is another 3y

Mustbeananswer??

The Pandemic has proved to me a lot can happen in a couple of years...

I dont think I need to make any rash decisions yet ...selling and downsizing is always an option ( I am very adaptable)  ...and a lifetime mortgage would certainly be a consideration (although I have read some bad press about them).Meanwhile Im confident my house will keep appreciating in value and £108 if it stays that way is a very acceptable rate for the next couple of years. 

Thrugelmir

Presumably you received the letters asking how you intended to repay the mortgage balance when the term ended. How did you respond? 

Onus is is on to proactively address the issue. Don't expect Santander to offer a range of solutions. 

Mustbeananswer??

Thrugelmir said:

Presumably you received the letters asking how you intended to repay the mortgage balance when the term ended. How did you respond? 

Onus is is on to proactively address the issue. Don't expect Santander to offer a range of solutions. 

I have always responded saying that in the event I wasnt able to clear the Mortgage I would sell and settle it that way....I backed that up with a current valuation and a picture of the property for sale at the going value from an EA.I ....quite rightly....have always considered it as their property...which I am helping to grow in value ??