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Old chap 83 worried about interest only mortgage.

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He has had an interest only morgage for 15 years, it's due for repayment in August. He is worried to death that he will have to sell his home to pay off his lender. What options does he have? he is understandably upset. Any advice would be welcomed.

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Well the obvious question is, has he been saving/putting aside the money to repay the capital element of the mortgage loan? If you take out an interest only mortgage and are intending to continue living in the house until the mortgage is due for repayment people normally take out some other sort of savings product that will mature at the time the mortgage has to be repaid. Has he done that?


Not sure otherwise how we can answer the question, knowing nothing of his circumstances.



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most lenders now without much question will extend Int only mortages 5 even 10yrs at the drop of a hat.

there was quite extensive FCA (i think) guidance on this not too long ago.


however he would or should have been getting quite a flurry of letters in the recent months and yearsasking what plans he had in place and his lender would have sent these? has he been ignoring them?


his age will be a factor here sadly, and only on i will assume a pension?

he he has ZERO contact eitherway in recent times?


whatever he does, steer him away from life time mortgage companies mind!!



please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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What is the current market value of the house ?


What is the mortgage amount approx ?


I wonder whether there is an option of continuing to live in the property when mortgage expires and pay a rent amount to the mortgage company.  The mortgage company then receives the rent amount while he is alive and on his death, the mortgage company are repaid the mortgage from the sale. 


Can't be a unique situation.

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Posted (edited)
17 hours ago, dx100uk said:


whatever he does, steer him away from life time mortgage companies mind!!



Hi DX, normally I would agree with you but I was wondering in this case, if the home owner has no family to leave his home to and just wants to live hassle free in it until death, would an 'equity release' lifetime mortgage be a bad thing?



He could pay off the original mortgage and maybe have a bit over for some luxuries (Swedish AuPair seems a good idea), if he doesn't care what happens to the property after his death and just wants a a no hassle home until end of life.



If he has to go into full time care then the Lifetime Mortgage would sell the home and take all or most of the funds and either way his care would be funded by his equity or by the state?

Edited by Homer67
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The house I guess is worth about £400k, no idea what the mortgage is, I would think about £50k. He has family. I think in some ways you could be right, let him live in peace with even two AuPairs!!!  


However, I think the family don't have his best interests at heart 🤨


I understand his current lender could accept an extension of his mortgage term without too much fuss?


Don't get me going about care home fees and oldies!!!!!!

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