Interest ONLY

colefordkid

Hi,
I moved home 3 years ago and took out an Interest Only mortgage for £60,000. I paid £143,000 for the house and hoped I could pay of the mortgage with proceeds from a previous property sale. However, I only had £12,000 left after moving so decided to keep that for emergencies and as I am sem-retired I cannot afford to pay a repayment mortgage. I am 62 years old and have come to the conclusion that I will have to continue to pay an interest only mortgage for the rest of my life unless I move and downgrade sufficiently for me to clear the mortgage and buy, without a mortgage, for cash.

Is this possible, my current building society is not aware that this is my intention and the current mortgage is due to expire in about three years. Will they allow me to extend forever paying interest on an Interest only mortgage or will they force me to clear in three years.

I figure that the longer I can stay in my current 3 bed detached house before downgrading, the more cash I shall have to play with if/when I do move. I do work part time running my own business, but in a very small way (netting about £4,000 per annum) pensions amount to about £8,000 per annum. I have a 16 year son living with me about to leave school but not (apparently) about to leave home yet. I will loose various benefits after he leaves school which will lower my income unless he gets a job and contributes to the running of the house etc.


Thanks

robnye

they will expect you to clear the mortgage at the end of the mortgage period.
what was the length of term of the £60K mortgage, ie 10/15 years?
you say it expires in 3 years, is that the end of the current mortgage deal you have?