My 利益/興味-only mortgage ends in seven years: What are my 選択s? DAVID HOLLINGWORTH replies
I have an 利益/興味-only mortgage with Mortgage 表明する (Bradford & Bingley), which?comes to an end in seven years' time.
Mortgage 表明する is?unable to 申し込む/申し出 me a remortgage, as it went under years ago.
My mortgage is for £180,000 and the 利益/興味 率 is 現在/一般に 7.5 per cent. The 月毎の 支払い(額) of £1,038 is affordable, and the house is now 価値(がある) £422,000, によれば Zoopla.
Mortgage help: Our new 週刊誌 Navigate the Mortgage Maze column 星/主役にするs 仲買人 David Hollingworth answering your questions
I'm worried about getting a mortgage どこかよそで as I don't have a 広大な/多数の/重要な credit history, and what's more worrisome is that I have no endowment to 支払う/賃金 it off when it ends.?
I realise I could sell up and downsize, but what other 選択s do I have? I am 55.
SCROLL DOWN TO FIND OUT HOW TO ASK DAVID YOUR MORTGAGE QUESTION
David Hollingworth replies:?There are a number of 問題/発行するs conspiring to 限界 your 選択s here.?
The most 圧力(をかける)ing 問題/発行する that you 直面する is the overarching question of how you manage the mortgage so that you can keep the 所有物/資産/財産, when the end of the 称する,呼ぶ/期間/用語 is 辛勝する/優位ing closer and closer.
You have an 利益/興味-only mortgage which, as the 指名する 示唆するs, means you are only 支払う/賃金ing 利益/興味 each month.
That means lower 月毎の 支払い(額)s than a 返済 mortgage, but you are not 減ずるing the mortgage balance 徐々に by 支払う/賃金ing an element of capita l and 利益/興味 each month.
> What next for mortgage 率s and should you 直す/買収する,八百長をする??
利益/興味 only: These mortgages 要求する just the 利益/興味 to be paid each month. That means that the mortgage balance is not 減ずるing
The 伝統的な approach to taking an 利益/興味 only mortgage was therefore that a separate 返済 乗り物 would run と一緒に.?
Separate 支払い(額)s made into that 返済 乗り物 would then 徐々に grow over the life of the mortgage, to 供給する a lump sum that would be used to 支払う/賃金 it off at the end of the 称する,呼ぶ/期間/用語.?
You について言及する endowment 政策s, which were 一般的に used as 返済 乗り物s at one time - but it cou ld really be any 貯金 or 投資 that could 行為/法令/行動する as a possible 返済 戦略.
No 平易な way to 返す
In your 事例/患者 there is no formal 返済 乗り物 in place, which means that you now have a much more 限られた/立憲的な time-でっちあげる,人を罪に陥れる to make inroads into raising the 資本/首都. That could be through a number of different methods.
Switching the mortgage to 返済 would of course be the ideal, and mean that the balance would be paid off over the remaining 称する,呼ぶ/期間/用語.?
However, on the 現在の 称する,呼ぶ/期間/用語 and 率 that would see a very 相当な uplift in 月毎の 支払い(額)s. The 月毎の cost of £180,000 at a 率 of 7.5 per cent over seven years would ロケット/急騰する to £2,761.
> Check how much would you would 支払う/賃金 with our best mortgage 率s calculator?
Running out of time: Our reader has an 利益/興味 only mortgage, which comes to an end in seven years' time
It can be possible to put part of a mortgage on 返済 with the 残りの人,物 on 利益/興味 only, which will 限界 the rise in 月毎の cost but also still 徐々に 減ずる the 量 you need to 返す.?
Splitting the 現在の balance half and half on the 現在の 条件 would still see the 支払い(額) rise to £1,943 per month and also leave £90,000 remaining in seven years' time.
Making overpayments whether smaller 正規の/正選手 支払い(額)s or lump sums as and when you can from 貯金 will also help 減ずる the mortgage balance. Again that's ありそうもない to be practical over such a short time.
> How to remortgage your home: A guide to finding the best 取引,協定?
二塁打 check the open market
All of these approaches could see the cost mitigated a little by switching to a better 率 - but your 欠如(する) of choice is 構内/化合物d by the fact that you find yourself stuck with Mortgage 表明する.?
The demise of Bradford & Bingley has left your mortgage stuck with the 'の近くにd 調書をとる/予約する' 貸す人, which no longer lends. It therefore doesn't 申し込む/申し出 new 取引,協定s to 存在するing 顧客s in the way that most 貸す人s will.
That leaves you stuck with the high variable 率 you are now on. It still makes sense for you to 調査する the 選択s with other 貸す人s, both from the 視野 of improv ing the 率 you are on and in 調査するing any 選択 to 延長する the mortgage 称する,呼ぶ/期間/用語.
Depending on how 厳しい your credit 問題/発行するs are there may be 貸す人s that can consider a remortgage.?
If the 示すs on your credit とじ込み/提出する were 比較して minor or happened some time ago, then some high street 貸す人s may now be able to consider lending. That could also enable a move to a longer 称する,呼ぶ/期間/用語, helping make a switch to 返済 more affordable.
Some 貸す人s can take a more 柔軟な approach to their affordability for those that have been classed as a mortgage 囚人, 罠にかける with a の近くにd 調書をとる/予約する 貸す人 and unable to switch 予定 to the tighter affordability now in 軍隊.
Alternatively, your age opens up 解答s 目的(とする)d at older borrowers, whether a 基準 mortgage over a longer 称する,呼ぶ/期間/用語 or a more specialist 取引,協定 such as 退職 利益/興味 Only.?
This would remain on an 利益/興味-only basis, but 除去する the need for a 明示するd 称する,呼ぶ/期間/用語 and 要求する the mortgage to be repaid on sale of the 所有物/資産/財産, death or a move into long 称する,呼ぶ/期間/用語 care.
Building societies and specialists like Livemore and Hodge 申し込む/申し出 this type of 製品, but will still need to see that the 月毎の 利益/興味 支払い(額)s will be affordable.?
It could 許す you to remain in the 所有物/資産/財産 and give more time to 減ずる the balance, but you will need to consider your income now and in 未来.
Finally, downsizing should certainly be considered as a 解答.?
Your 現在の 貸す人 may not have mortgage 選択s on 申し込む/申し出, but it does have support pages online and talking to it now about your 関心s may also help form your approach.
NAVIGATE THE MORTGAGE MAZE
- Can my daughter keep her 直す/買収する,八百長をするd mortgage after a break-up?
- Why can't I 出口 my Santander mortgage 早期に without 刑罰,罰則?
- Our mortgage is 直す/買収する,八百長をするd at 1.99% until 2025 - how do we 準備する?
- Is now the 権利 time to jump off my variable mortgage 取引,協定?
- How do I capitalise on my 1.24% mortgage 率 before 2026?