Property News · October 22, 2015

We want to extend the terms of our interest-only mortgage


We have a reduced income but there is equity in our home and my husband is a beneficiary for his mother’s London propertyQ My husband and I want to extend the term of our mortgage from the current five years from now up to 10 years. This is to enable us to stay put in London until our daughter has completed her education. However, this means we will both be in our early 60s and we already earn less now than when the mortgage was originally agreed. We owe £210,000 on a flexible mortgage and currently pay interest only. We have a large potential equity in the home and intend to sell at the end of the mortgage term and move out of London. My husband is also one of two named beneficiaries for his mother’s London home. At its current value this would clear the outstanding loan we owe. Given the equity in our own home and the inheritance but with a reduced income, how likely would it be that we could extend our mortgage term and would be able to continue to pay interest only? SMA It’s not totally clear whether your husband’s inheritance from his mother’s house is actual or potential. If it is actual – and so the house could be sold to raise cash – you could pay off your mortgage entirely instead of extending it. Continue reading…

Source : theguardian.com
Read more…We want to extend the terms of our interest-only mortgage

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