Interest-only mortgage coming to an end, chunk left to pay 14 November 2022 at 10:29AM in Mortgages & endowments 6 replies 374 views

Johnny2R

I have an interest-only mortgage coming to an end in April next year. I was hoping to have paid the whole amount off but haven't done so yet, and have around £75,000 outstanding on a house which is probably worth around £240,000 now. I can probably pay off 75% of the amount from savings, pension, etc., but it will be a push. One obvious option is to sell the house (although timing may be an issue as I am currently renting it out). But if I wish to keep it, what options are likely to be available to me, if I wish to get some kind of small new mortgage or loan for £30,000 or so?

MovingForwards

Remortgage it on a IO buy to let, why would you be looking to use pensions and savings for a property you're not living in.

moneymanager

I have a similar issue although its my 77 year old mums house that she does live in and when her term is out she will not be able to remortgage due to her age.  

Johnny2R

I am slightly concerned that remortgaging won't be easy for me either, as I'm 62.

moneymanager

You might be ok as it's because mum will be in her 80s at the end of her term.  
Such a worry though.   Hope you get some advice.  

Johnny2R

I'm going to be working for the next few years anyway, so it's just a question of age rather than income.

K_S

Johnny2R said:

I have an interest-only mortgage coming to an end in April next year. I was hoping to have paid the whole amount off but haven't done so yet, and have around £75,000 outstanding on a house which is probably worth around £240,000 now. I can probably pay off 75% of the amount from savings, pension, etc., but it will be a push. One obvious option is to sell the house (although timing may be an issue as I am currently renting it out). But if I wish to keep it, what options are likely to be available to me, if I wish to get some kind of small new mortgage or loan for £30,000 or so?

@johnny2R If your plan is to keep the property as a rental, it should be fairly straightforward to re-mortgage it to an I/O BTL product. As long as you are an owner occupier, have some form of earned income currently and aren't dependent on the rental income, with BTL, there are plenty of lenders that will allow you to go to 80 or higher on the maximum term, so you being 62 should not stop you from getting a mainstream BTL rate with at least a 17-18 year term.

If you aren't an owner occupier then it gets a bit more complicated but should still be doable as long as you have a decent track record of being a landlord.