Interest only Mortgage on investment property maturing in 10 years

My wifes parents (78 & 80) built a smaller house with back in 2008 with the intention to downsize during their retirement. Unfortunately, they could not get sale for their existing house, so are in the situation where they have been on an interest only mortgage on the new smaller house while living in the larger house. The new house is rented and this income covers the interest only payments. They have maintained the interest only payments throughout but have not paid anything off the remaining balance (150K). Their only income is their state pensions, so not much option to increase the payments.
My concern is that they have no mortgage protection and were not aware of this until recently. What are the options available to them? If they sell the house, it will not likely cover the outstanding balance.

They would not have mortgage protection anyway at that age.

What is the value of both houses?

Which lender?

What is the scheduled repayment date of the mortgage?

What is the interest rate?

Brendan

Correct. No Mortgage protection.
House 1 -- approximately 150K.
House 2 -- approximately 100K.
PTSB over 300 months
The loan is split into 2 sections on different start dates (2005 & 2008). 2005 loan is 1.35% and 2008 is 0.8%.

It's not clear to me which house is the investment.

Let's assume it's House 2.

The interest on €150k @an average of 1% is €1,500

Are you saying that the rent is only €125 a month? Or are you saying that they are living off the rental profit instead of using it to reduce the capital?

300 months from 2005 is 2030 , so they have 10 years left for it to increase in value to be enough to pay off the mortgage.

So I don't see the problem.

Brendan

@damien79

Could you outline for each house:

1. market value
2. outstanding mortgage (if any)

It's hard to make an assessment otherwise.