We have just completed an IVA 2008 and still have an Interest free Mortgage which finishes in 6 years ,we are 80/70 ,if we are still here ,what can happen to us re the Mortgage and staying in our home.?
Thankyou.
I think that the best thing you can do is to take advice about your situation from a properly authorised Independent Financial Advisor. Andrew Graveson of Brightoak or Tony Parsons, who both post on the forum as mortgage experts would be a great starting point.
Hi Alanta.
In six years the mortgage company will want their capital back and you will either have to sell, negotiate an extension or find a new lender. There are companies that will lend interest only and they are repaid from the estate after death. However,the danger is that if one of you survives the other the single income will not be enough to pay the mortgage and the property could be lost.
If you have children or other relatives who will be beneficiaries in your wills, you could sell the property to them at a reduced price on the condition you remain there until death or permanent incapacitation. There are potential problems here also but a good solicitor could protect all involved.
As Melanie has suggested it would be worth speaking to a good financial adviser particularly when your current mortgage deal expires.
