Mortgage Default Fees/Charges?

mrfixituk44

I am about to get a 21 year mortgage and consider it high risk because of the cost of living/economic picture.

If I default and no way to continue paying and my house is sold do I pay the full 21 year term interest plus charges or just the initial amount?

user1977

mrfixituk44 said:

If I default and no way to continue paying and my house is sold do I pay the full 21 year term interest plus charges or just the initial amount?

Neither. You never have to pay interest for the future.

You pay whatever the balance of the principal amount borrowed then is, any interest incurred which you hadn't already paid, and all of the lender's costs involved in your default and repossession (less whatever they manage to get from the sale).

ACG

You pay the balance as it stands + interest between the repossession and the sale + legal costs (you might also be liable for the early repayment charges). 
The money for that will come from the sale of the property. If there is a shortfall you will need to pay it. If the property sells for more, then you might get a cheque in the bank. 

If it starts to get even remotely close to that, sell up or rent the property out (and speak to the lender in both cases). Defaulting on a mortgage is going to make things very very difficult to many years. Do whatever you can to avoid that.