Published: 12/07/2021 By Martin Card
Are you one of the many that has an interest only mortgage and are concerned about how you are going to repay it?You are not alone
In 2022 there will be c. £12.5 million of interest only mortgages required to be repaid. This is expected to increase to c. £32 million by 2032.
Many took interest only mortgage as it was an affordable way to get on to the property ladder and many expected that they would repay that debt by selling their home.
However, in England our home is our castle, and this tends to be more and more the case the older we get. We have established our local connections with Doctors, Dentists, friends and shopping facilities and frequently we see people not wanting to sell their house and move.
So, what is the alternative, how you do repay an interest only mortgage when you do not have the savings to do so?
A lifetime mortgage, also referred to as equity release, could help you repay that interest only mortgage and so there is no need to move.
You could stay in your home forever
Lifetime mortgages allow you to repay an interest only mortgage and either repay the interest on a regular basis, roll up the interest i.e., have no further monthly commitment to the mortgage or pay lump sums off the mortgage as and when you can afford it.
You should seek advice if you are considering a lifetime mortgage or other forms of equity release as it may not be the most appropriate solution for you.
However, if you need advice about repaying your interest only mortgage feel free to get in touch with our qualified financial advisor. We offer a free consultation to go over your circumstances and possible options. Call us on 020 8661 7878 or email advice@turpinba.co.uk