One year left on interest only mortgage

J

john martin

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I have one year left on an interest free mortgage from Bank of Scotland but won't have the capital to repay it at this time. I am near retiring age and have only a very small private pension. There is plenty of equity in the house. Mainly I want to know where is the best place to get good advice on this.Any suggestions would be appreciated.
 
Hi John

This is a tough one.

How much is the mortgage?
How much is the value of the property?
I presume you are on a cheap tracker?

Bank of Scotland will want their money back when the mortgage term is up.

Have you any other assets to sell?

Because of your age, you won't get a mortgage.

Your options, as I see them, are as follows
1) Sell the house and trade down.
2) Borrow from someone else e.g. have you a child who could remortgage their home to give you the money.
3) Try to do a deal with BoS. For example, agree to switch to a variable rate after the tracker period is up. If they sell your loan, the new owners might agree.
4) Tough it out as long as possible. Continue paying the interest only. It will take them a long time to repossess your home. It will be a lot of hassle and you will face legal costs. But it is an option.

Brendan
 
Do you have any of the capital. How initially had you planned to pay it back when the term ended. Is it your home or a rented property.
 
John Martin,

Have a look at the various equity release schemes on offer, depending on your age ( 65 ) they may be a solution to your problem. You say you have a large amount of equity built up in your home. Without going into specifics can you tell me in % terms how much equity is in your home as compared with the mortgage balance becoming due.
 
I don't understand but maybe I'm missing something obvious here...
How would an equity release be a solution to this problem?
 
I'm presuming the suggestion is borrow off the equity company and pay off the bank. I didn't even think there was any of those schemes around anymore, is there?
 
Clubman,

Yes that is exactly what I mean. Study how theses schemes work before posting. If John Martin has enough equity built up in his house compared to the loan amount outstanding to Bank of Scotland, then this situation will present no problem for the equity release firm, providing he can show them he can live on his small pension. Indeed, if he has substantial equity built up in the property, the equity release company may not even consider his small pension when doing their sums.
 
I think most of know how they work, the question is who are they? I thought the few companies that were doing that left with the Tiger. What company is offering it now?
 
I believe the last equity release company operating out of Ireland was Seniors money which finished operating in 2011. However you can still avail of an array of equity release companies in the UK and indeed Europe; like Stonehaven, more2life etc. Due to being within the E.U. it should not be impossible accessing their respective services.
 
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Descart said:
Study how theses schemes work before posting.
Click to expand...
You're not a moderator so don't tell me when I should and should not post...
Better still try explaining to the original poster how this scheme might work rather than getting on your high horse.
:rolleyes:
 
You have posted 43,842 times, so I expect a modicom of logic to your posts. John Martin can post to this web site, so the man can read. Therefore he should be able to surf the net as ascertain how the various schemes operate.
 
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I still doubt any company outside of Ireland is going to be willing to do an equity release. This isn't much different to getting a mortgage and it is impossible to get a mortgage from outside the country to buy property in Ireland.
 
Descart said:
I believe the last equity release company operating out of Ireland was Seniors money which finished operating in 2011. However you can still avail of an array of equity release companies in the UK and indeed Europe; like Stonehaven, more2life etc. Due to being within the E.U. there should not be a problem accessing their respective services.
Click to expand...

Due to being within the EU does not in any way mean it's possible to easily access services as you put it.

Can you give examples of how one can access mortgages in Finland for Irish property.

Or life insurance in Italy for Irish residents

Or house insurance in Holland fir property inIreland

Or car insurance in France for Irish cars.
 
Bronte,

Like any commercial business within the EU, you must seek the service or product. There are people in this Country that have mortgages with German banks and Dutch banks. Indeed the Distant Marketing of Financial Services Regulations was specifically implemented by the Commission in order to break down the barriers for cross border trade in financial services (SI 853/2004 refers). I did not say it was easy, I did say it was available.

So Bronte, you need to lift the phone or email the organisation in question to see will they do business with you. I am only trying to provide john martin with a possible alternative avenue to address the predicament he will soon be in. Maybe you could give the poster some advice rather than having a go at me for providing the poster with a possible remedy. I do not see you offering any positive advice in this regard.
 
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