Interest only mortgage

chubbylady
chubbylady Forumite Posts: 1 Newbie
in Mortgages & endowments
Hi,
I currently have 10 months left on my interest only mortgage.  I have managed to pay £35000 due to money inherited,and now owe £38000, I am 63 and work part time.  Could anyone advise where I can go from here.  Thank you

Comments

  • la531983
    la531983 Forumite Posts: 876
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    edited 12 September at 9:15AM
    - Pay the £38k back (guessing this is unlikely)
    - Speak to the bank about paying it back over a longer period (they may not allow this due to your age)
    - Borrow the money from elsewhere (maybe not likely)
    - Sell the house to settle the debt (perhaps your only option here to be honest)

  • MWT
    MWT Forumite Posts: 8,881
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    edited 12 September at 9:26AM
    chubbylady said:
    Hi,
    I currently have 10 months left on my interest only mortgage.  I have managed to pay £35000 due to money inherited,and now owe £38000, I am 63 and work part time.  Could anyone advise where I can go from here.  Thank you
    How much would you estimate your property is worth at the moment?
    Is the nature of your part-time work something that you can continue doing past normal retirement age?
    You may have more options than just selling the property, depending on the answers ...

  • Flugelhorn
    Flugelhorn Forumite Posts: 4,939
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    more info needed eg is there a pension lump sum lurking? are you going to be able to get another mortgage into retirement years? How would you feel about downsizing?
  • Growingold
    Growingold Forumite Posts: 276
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    chubbylady said:
    Hi,
    I currently have 10 months left on my interest only mortgage.  I have managed to pay £35000 due to money inherited,and now owe £38000, I am 63 and work part time.  Could anyone advise where I can go from here.  Thank you
    How long ago did you take out this interest free mortgage?  I'm surprised the bank granted it without knowing how it was going to be repaid.  Maybe it was missold in which case you would have a case with the bank to convert it to a repayment mortgage (maybe some compensation as well).  
    If it was sold correctly did you have a plan to pay it off at the end of the term?  
    Talk to a mortgage advisor.
  • silvercar
    silvercar Forumite, Ambassador Posts: 45,941
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    You can get mortgages to much older than 63. Chances are a broker would be able to help you find a lender that would do a repayment mortgage to the age of 70 or even older. 
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  • michaels
    michaels Forumite Posts: 27,510
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    If you could extend the loan for another 10 years and convert to repayment you would need to find an extra £300 per month on top of the interest payment so perhaps a total of £500pm
    I think....
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