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  • FIRST POST
    • jimmy55
    • By jimmy55 31st Jan 18, 5:03 PM
    • 8Posts
    • 1Thanks
    jimmy55
    shortfall at end of interest only mortgage
    • #1
    • 31st Jan 18, 5:03 PM
    shortfall at end of interest only mortgage 31st Jan 18 at 5:03 PM
    Hi, I am 62yo and my interest only mortgage of 43K came to an end in July last year. Due to financial problems 10 years ago I no longer had the endowment policies in place which I had intended to pay off the mortgage. I had assumed that there would be no problem carrying on interest only until I retired at 66 and was able to downsize. How wrong I was! Although my credit rating is now excellent, my age and lack of interest only mortgages means I am struggling to find a mortgage / loan to repay the lender. I am self employed with a fairly low income as my wife and I have 4 independently living parents between 80 and 95 plus 2 kids at home. The house is conservatively worth 350K so there is plenty of equity.
    I have made some payments reducing the sum to about 38K and have about 11K which I can use to part pay off the outstanding sum plus the possibility of a pension pot of about 20K but I am loath to cash in my pension pot if I can avoid.
    A lifetime mortgage would have been ideal but a further complication is that my wife is only 49 and renders us ineligible. One more complication is that there are 2 charges against the property from historic credit card debts of 17K
    I would welcome any suggestions, I just need something to bridge the 6 years to retirement when I could downsize, release equity, or have potentially benefitted from inheritance.! Cheers, Jim
Page 2
    • Thrugelmir
    • By Thrugelmir 5th Feb 18, 10:31 PM
    • 58,490 Posts
    • 51,854 Thanks
    Thrugelmir
    The problem with any repayment loan is lack of income to pass current 'stress' tests .... hence desire for interest only for 5 years.
    Originally posted by jimmy55
    Commercially not viable for the lender. Nor in keeping with current regulatory practice. For a lender to help you, you need to be seen to making a committment yourself. Without a two way trade. You'll garner little support.

    Don't your children work?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • jimmy55
    • By jimmy55 5th Feb 18, 10:35 PM
    • 8 Posts
    • 1 Thanks
    jimmy55
    15 and 18yo apprentice.

    Thanks all for your comments. In negotiation with lender to work it out on a repayment basis. Many thanks.
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