Mortgage Problems

[kensington109]

I have a primary (now interest only because of the need to cut expenditure) mortgage of 165K with a well-known building society and a secured loan with Welcome Finance of 15K.

 

I am 60 years old and earn enough money to service the above but in a few years' time my income will be reduced to about half of what I get now.

 

Is it possible to downsize and thus reduce my mortgage outgoings even though a Possession Order was granted against me for mortgage shortfall during financial difficulties four years ago. Since then my repayments have been kept up to date and my children have now grown up and moved out.

 

I am not sure where to start........so thanks for any advice

[sillygirl1]

I would think that if a possession order was granted four years ago and not carried out then it is considered 'spent'.

 

In the current climate it may prove difficult though to get another mortgage.

[kensington109]

Thanks for that Sillygirl1.

 

However, would you think it would be possible to change the existing mortgage for 165K for one that is only 120K, for example?

[sillygirl1]

I'm not a mortgage adviser and have very limited experience there - mostly negative. You would need to find that advice elsewhere.

 

Sorry, but I can only give general advice rather than specific advice on remortgaging.

[tembo]

Some mortgages are portable, and if yours is you may be able to transfer it to a cheaper property if you were to sell your existing one. Check the documentation for your mortgage or speak to your lender.

 

This may or may not be the best plan of action, it would be best to consult an IFA to find out whether in your situation you could get a new mortgage on another property and whether or not this is better than porting your existing one. Remember that it would be in the IFA's interest to sell you a new mortgage rather than advising you to port the old one, so be sure that the advice given is really the best advice.

 

At your age I would be concerned about having an interest only mortgage, since at some point you need to repay the capital, hopefully without having to sell your house.

 

I am not an IFA and cannot give you any specific advice.

Edited August 15, 2009 by tembo