Property News · July 16, 2018

I'm 65 and my interest-only mortgage is ending – what can I do?


I still owe £112,000 and I want to stay in my house, not sell up to pay it off Q I’m 65 and single and still work part time earning £23,000 a year (£1,560 monthly) on top of my private pension of £550 and state pension of £700 (both monthly). My interest-only mortgage will come to an end in November 2019 and I will still owe £112,000. The house is worth £190,000 and I want to stay in it. What are my options? PHA Until relatively recently, because of your age, if you didn’t have the money needed to pay off your interest-only mortgage at the end of its term, your choice would have been between selling up and downsizing or taking out an equity release plan to raise the cash needed to pay off the mortgage. Those options are still available to you, but as a result of the relaxation of the rules about the sale of interest-only mortgages by the Financial Conduct Authority (FCA), there has been a growing number of specialist “later life” lenders offering both interest-only and repayment mortgages to older borrowers excluded by mainstream lenders because of their age. So if your current lender won’t let you extend your mortgage, there is likely to be a specialist lender who will let you take out a conventional residential mortgage provided you meet its affordability requirements. Continue reading…

Source : theguardian.com
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