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Retirement Interest Only Mortgage
caryn14
Posts: 38 Forumite
My mum and dad took out a retirement interest only mortgage with Halifax some years ago for £35,000. Sadly dad passed away a few years ago and my mum now has the same mortgage in her sole name.
When interest rates were lower, the amount paid back each month wasn't a lot, certainly within my mum's budget so not a problem. Over many years however, she's outside of any fixed term contract and the amount she is paying back has more than tripled, it's a lot more money than it would be if she were back inside a fixed term of some sort (I don't know the current % rate off the top of my head).
She's now 92, in reasonable health and registered disabled. I have financial POA over her affairs so am looking at ways of saving her some money every month. I will approach the Halifax as a first point of contact of course, but would she be eligible to enter a fixed term at her advanced age? Are there any other options open to her?
Thanks for your advice.
When interest rates were lower, the amount paid back each month wasn't a lot, certainly within my mum's budget so not a problem. Over many years however, she's outside of any fixed term contract and the amount she is paying back has more than tripled, it's a lot more money than it would be if she were back inside a fixed term of some sort (I don't know the current % rate off the top of my head).
She's now 92, in reasonable health and registered disabled. I have financial POA over her affairs so am looking at ways of saving her some money every month. I will approach the Halifax as a first point of contact of course, but would she be eligible to enter a fixed term at her advanced age? Are there any other options open to her?
Thanks for your advice.
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whats the balance of t he o/s mortgage?0
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caryn14 said:My mum and dad took out a retirement interest only mortgage with Halifax some years ago for £35,000.So as this is an interest only mortgage, presumably still just £35,000 owed?
Do talk to Halifax first to see what options they can offer, and are you sure this is a RIO as they are generally fixed and only repayable upon the demise or entry into long-term care of the final life on the mortgage?caryn14 said:I will approach the Halifax as a first point of contact of course, but would she be eligible to enter a fixed term at her advanced age? Are there any other options open to her?Other options would be looking at remortgaging either to a RIO (but now may not be a great time to lock in the interest rate) or simply repaying the current mortgage using an equity release product if the property is suitable as that could eliminate the need to make any repayments at all.I would start by determining exactly what the product she now has really is, and see what Halifax can do to help...
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