Short Answer: If you can’t pay off your interest-only mortgage, you may extend the term, remortgage, or release equity. An adviser can help you choose the best option for your financial situation.
Here are two different scenarios:
- If your mortgage term ends soon: If your mortgage term is about to end, then you have to start planning how you will pay off your mortgage loan.
- If your mortgage term has ended: If your mortgage term has ended and you still haven’t paid off the loan, then it’s essential to act promptly.
Let’s take a look at how our experts can help you to get out of these two situations:
If your interest-only mortgage term ends soon
If your interest-only mortgage is nearing the end of its term, it’s crucial to start planning ahead now so you can comfortably manage the higher repayments down the line. Our expert mortgage advisers can help in several ways:
- Review your situation and predict exactly how much your new repayments will be. This allows you to budget accurately.
- Help you switch to a normal repayment mortgage in advance but over an extended 30-year term. This keeps monthly payments affordable even after the interest-only period.
- Show you options to pay down some mortgage capital now. This also lowers the eventual normal repayment amount.
- Guide you in boosting your income if needed, through ideas like taking in a lodger or renting out part of your home.
Contact us – we can take over all communications with your lender and ensure a smooth transition to full mortgage repayments.
If your interest-only mortgage term has ended
If your interest-only mortgage has already switched to a normal repayment basis and you’re unable to make the higher payments, don’t lose hope. We can quickly help in several proven ways:
- Negotiate extended repayment terms with your lender so monthly costs are lower.
- Arrange payment holidays or temporary partial payments if struggling short-term.
- Explore switching part of the capital to an interest-only lifetime mortgage which removes time pressure.
- Compare equity release or downsizing if the above solutions don’t cover the full shortfall.
Trust our dedicated experts to fight your corner. We’ll systematically assess all appropriate solutions to find the right approach to keeping you in your current home. Our assistance has helped many borrowers overcome seemingly impossible repayment situations. Contact us today to turn things around.
Repaying your interest-only mortgage – expert help is vital
Reaching the end of your interest-only mortgage can be worrying if you aren’t sure how to pay back what you owe. But with the right planning and advice, you can protect your home. This guide explains your repayment options and how we can support you.
- Investments: Pinning too much hope on investments growing enough to repay your mortgage is risky. Market drops can leave you with a shortfall. Our experts analyse your holdings to create a safer backup plan ensuring complete repayment.
- Savings: Relying solely on savings can also be optimistic. We help monitor your savings growth and interest to judge if it will realistically cover the final payment. Where there’s a projected gap, we source and compare alternative repayment solutions.
- Pension lump sum: Cashing out your pension pot can free up funds to settle your outstanding mortgage. But this affects your retirement income. Our advisers model different scenarios to establish if it’s your best option without impacting your future security.
- Downsizing: Moving to a cheaper property seems an obvious route. But current market dips may leave you stranded with negative equity. We run checks to confirm your new purchase price comfortably covers repayment while still upgrading your lifestyle.
The key is starting early and fully understanding all your repayment options. Leaving things late restricts solutions and raises stress. Contact us – our tailored approach models income, savings, assets, and expenditure to create a repayment strategy where you can’t lose your home.
Extending your interest only mortgage term – expert guidance for success
Reaching the end of your interest-only mortgage with no repayment plan can be daunting. Seeking an extension to your term seems an obvious solution. However, lenders rarely approve extensions without strong evidence you can afford higher repayment mortgages later. This is where our specialist support helps secure extra time while protecting your long-term interests.
When advising around term extensions, we dig deep into your overall financial situation. Comprehensive cash flow modelling enables us to calculate exactly what repayment mortgage you can afford now and in retirement. We’ll match this to your precise extension needs while ensuring your request aligns with lender criteria.
Our expertise also allows us to restructure your current deal in positive ways:
- Splitting to part interest-only, part repayment basis means smaller payment hikes later.
- Overpaying above mandatory amounts gets your balance dropping faster.
- Refinancing deals via our exclusive lender contacts reduces overall interest.
Essentially, we strengthen extension requests through financial optimisation while spotlighting potential pitfalls ahead. This provides greater certainty around a successful outcome.
Our customers enjoy retirement mortgages lasting into their 70s and 80s backed by the detailed assurance we provide around long-term affordability. Ultimately, securing your home beyond the standard mortgage term takes experience. Contact us today to unlock the extra years you need.
New mortgage options if you cannot pay off your interest-only loan
Reaching the end of your interest-only mortgage without the means to repay it can be extremely worrying. But even if you cannot pay off the full balance now, expert advisers can still find ways for you to meet repayments or replace your current loan. Here we explain smart alternatives that could keep you in your home.
Later life lending solutions
Specialist lenders offer interest-only retirement mortgages with terms extending into your 70s or 80s. Provided you meet affordability criteria, these provide lifetime continuity even if you cannot pay off your existing deal. Advisers will liaise with your current lender to transfer you over.
Unlocking part of your home’s value through equity release generates cash to pay off your outstanding mortgage debt. If you are over 55, lifetime mortgages allow you to access 25% to 60% of your equity on an interest-only basis. The loan only gets repaid when you pass away or enter permanent care.
Lifetime mortgages come with a no negative equity guarantee protecting you from potential house price drops. Our advisers will calculate precisely how much equity you need to release to settle your current interest-only mortgage first. This ensures you aren’t borrowing excessive amounts.
Get in touch for a repayment plan
If worries about repaying your interest-only mortgage are keeping you awake at night, please get in touch. Our dedicated team provides comprehensive debt advice and will systematically assess all options if you cannot pay off what you currently owe. We’ll then recommend alternatives that allow you to meet repayments comfortably. Contact us today to discuss your situation in more depth.
Struggling to pay off your ending interest-only mortgage? Specialist advisers can recommend new mortgages you are able to pay off long-term. Or release equity to settle your current debt. Expert financial advice assesses all options if you cannot pay the full balance when your term ends. Contact dedicated consultants to discuss solutions to keeping your home protected.