When my mortgage ends what are the banks likely responses?

alanski_2

400ixl said:

No one can really answer the question from the information you have given.

For example, if you are at a more senior age then the options would be more limited than if you were younger. With the latter they may allow you to switch to a repayment mortgage. Unlikely they would let you carry on with an interest only, but some may.

What are you trying to achieve may be a better question to put forward.

Becoming senior yes - lots of better more focused questions but this was the discreet one my other half kept on about:) Thx

user1977

Jemma01 said:

Question to the other members:
If they repossess the house, would this put OP in a difficult place getting another mortgage? 

Repossession generally only follows a significant period of arrears, which in itself is going to be bad on your credit record - not sure that repossession itself makes much of a difference. It's a bit daft to allow that to happen if you have enough equity to easily sell and clear the mortgage.

MWT

alanski_2 said:

I wanted to hear from others about what the bank does when  the end of the term comes if you still owe on the mortgage. Do they reposess the house and sell giving you the equity? Do they let you extend the mortgage? Do they wait for you sell and pay them back? How reasonable are they? I'd love to hear others experiences and scenarios based on dealing with banks. Tia

With the amount of time you have left the only direct answer you need is 'nothing good happens' so waiting until then should never be a part of the plan as it just ends up with you paying a high interest rate and rapidly burning away your remaining equity in legal fees and other charges if the lender ends up heading down the repossession path, which is almost inevitable if you have no alternative plan by then.

You have enough time to keep control of the process and maximise the return you can get from the equity you have in your property, but you need to start getting some good advice now...

I would suggest you start with a call to StepChange, they offer advice without a charge, even for equity release, so they can help you work out all of your options and avoid just running into the end of the rails when the mortgage term ends.

Plenty of other advisors out there as well that can offer traditional mortgage advice and also those able to help with equity release, but they will usually involve paying fees that you may prefer to avoid.

Not a lot more we can say without more detailed information from you (property value, both your ages, retirement income details etc.) so probably best to deal in private with a suitable advisor if you are not happy sharing that level of detail on here.

Hoenir

user1977 said:

Jemma01 said:

Question to the other members:
If they repossess the house, would this put OP in a difficult place getting another mortgage? 

Repossession generally only follows a significant period of arrears, 

Or the failure to settle the outstanding mortgage balance when the contractual term comes to an end. With no agreement subsequently reached. 

silvercar

Hoenir said:

user1977 said:

Jemma01 said:

Question to the other members:
If they repossess the house, would this put OP in a difficult place getting another mortgage? 

Repossession generally only follows a significant period of arrears, 

Or the failure to settle the outstanding mortgage balance when the contractual term comes to an end. With no agreement subsequently reached. 

You don’t often hear of these situations coming to court. More likely the lender puts you on their SVR which is high enough to incentivise you to take out a new mortgage or sell the property.