Lifetime Interest Only Mortgage - explanation please!

suemacd22

Thank you for all your comments. I have finally trawled through the paperwork and put it into order. It is a lifetime interest only retirement mortgage which is portable. In 2018, she purchased a property at £260k and has a fixed rate interest only mortgage of £80k, she also borrowed £42.5k for home improvements - interest only at a variable rate which also has a mortgage account number. Hence the two mortgage accounts and payments. Current balance is £122.5k and the estate agent has valued her property at between £310k & £320k. So, equity could be up to £200k. The questions I’ll be asking Scottish Widows in our telephone meeting this week are a) if she moves can she buy a property that is more than £320k and b) if she decides to stay where she is, can she release some of the equity for home improvements and c) can she do both. She has the means to pay if there is an increase in monthly payments.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81994127#Comment_81994127

Does the mortgage have an end date? Most interest only mortgages do, unless they are taken out as lifetime mortgages.

I would guess they would be happy to move it to a new property if the new property is worth more and she can show sufficient income to satisfy their lending criteria.