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AbitPeeved

End of interest only mortgage - equity question

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Hello, 

 

I was hoping to get some advice.

 

My Nan died last year towards the end of an interest only mortgage. Due to her circumstances she could only get an interest only mortgage at her age (70 at the time).

Now that the term of the mortgage has passed, the company has agreed to give us a period of 1 year to sell the property and repay the mortgage which is our intention. Given the valuation of the house, there is approximately £90,000 in equity after the mortgage is settled, the question I need help with is, what happens if we cannot find a buyer in the next few months? Can the mortgage company repossess the house and take the equity in it?

 

 

Kind regards for any help!

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they will sell to anyone who wil cover ther losses and charge a small fortune in costs. Any left over would be yours

However, any debt is not yours but your nan's so whatever happens the debt dies once her assets are liquidated.

Selling at auction gets you your cash quickly and is worth considering if the house is in poor repair or of different construction that would make a mortgage hard to get for a prospective buyer

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