What Can I Do Rather Than Just Sell

[fireson3]

I'm not far from retirement and have an interest only mortgage due for repayment next year. The mortgage people are precluded from extending the term.

I was expecting to pay the mortgage off but it is not possible to do so. What I would like to do is to continue the mortgage for say 5 years with another mortgage company and then sell when various issues are more favourable. I could sell it to my children with suitable provisions but would rather split any monies when I pass on. When the mortgage is repaid there should be £200K clear. Any suggestions

[bednobs]

how much is the mortgage for? Will you have enough money in retirement to pay it?

[Hymie]

There must be lots of people in your position who have an interest only mortgage – unable to pay off the principal sum at the end of the 25 year term.

I would guess the loan amount to be around £50-60k and therefore you have around £140-150k equity in the property.

Given the level of equity – I would seek advice from a mortgage broker. I would be very surprised if they could not find you a lender who is willing to extend the interest only mortgage; given that there is no risk (to them) in such a loan.

[factor-fiction]

An equity release scheme may be possible here