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Interest Free Mortgage Ending Next Month - Options?
damodee
Posts: 35 Forumite
Afternoon Everyone, just looking for a bit of advice.
My father has a property with an interest only mortgage which expires next month. He rang the bank to extend for another 12 months, as I am selling my property and want to buy it, but they said you can't extend it now.(They did say if we phoned up two years ago to extend it they could of done). I don't believe my father mentioned I'm selling my home to buy it.
My question is this. If we tell them we are in the process of selling a property to pay the mortgage off, which could take 3-6 months, then use the cash funds to clear it would the bank be willing to wait? So far, they have not been very helpful although are offering to look at a new mortgage product, but my dad really does not want to go through a full mortgage application at his age, especially as he wants me to buy it anyway.
Additionally, my father owns his own home with no mortgage and the equity would cover the cost of the other property but is there any way he can use this as a guarantee (not sure how to explain it) against his other property, while I sell mine, to demonstrate they would not be out of pocket?
I hope this makes sense and any advice would be appreciated.
Thank You
My father has a property with an interest only mortgage which expires next month. He rang the bank to extend for another 12 months, as I am selling my property and want to buy it, but they said you can't extend it now.(They did say if we phoned up two years ago to extend it they could of done). I don't believe my father mentioned I'm selling my home to buy it.
My question is this. If we tell them we are in the process of selling a property to pay the mortgage off, which could take 3-6 months, then use the cash funds to clear it would the bank be willing to wait? So far, they have not been very helpful although are offering to look at a new mortgage product, but my dad really does not want to go through a full mortgage application at his age, especially as he wants me to buy it anyway.
Additionally, my father owns his own home with no mortgage and the equity would cover the cost of the other property but is there any way he can use this as a guarantee (not sure how to explain it) against his other property, while I sell mine, to demonstrate they would not be out of pocket?
I hope this makes sense and any advice would be appreciated.
Thank You
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