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Mortgage options

I'm 66, retired but with a mortgage (offset) of c. £58k. It's becoming difficult to keep up with this and we have the place on sale with the intention of moving into rented accommodation. Not ideal, I know, but it's really the only option open to us. The property market in this area is almost at a standstill so we are seeing few prospective buyers, and most of those are waiting on sale of their own property - even where they are interested, they can't proceed. Meanwhile, keeping up the mortgage payments (£1000+ pcm) is becoming a struggle - in fact we are only doing so at the expense of eating into cash resources. Received wisdom is that I should talk to the bank but I'm concerned that, if I do so, an even worse situation may result. I've been trying to find work that would produce enough income to bridge the gap, but quite a few people of so-called working age are finding that hard enough. Added to that, most available jobs are either minimum wage, or verging on scams (even Kleeneze use Jobcentres to recruit!), while reasonable salaried-type jobs are unlikely to be offered to somebody whose term prospects are not long. I'm unlikely to find work in my own specialism because of my age, so doing something to reduce the mortgage outgoings (it's got about six years to run) seems to be the only option that would actually be under my control. Any suggestions?

Reply to
Bob Jones
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First of all if you're fit and healthy I can see any major impediment to being employed. Of course different employers have different attitudes.

Have you got a spare bedroom? If you take a lodger, it's likely any income will be tax free, and make a major hole in your mortgage responsibility.

Reply to
Fredxx

Jeez a grand a month for a mortgage of 58K.

Are you stuck in some 80s fixed rate, you should be paying a third of that amount

tim

Reply to
tim.....

Yes, but what is the term?

Reply to
cryptogram

It was a bigger mortgage when it started out. It has a remaining term of about 7 yrs. My age is obviously a factor in options for what to do about it.

Reply to
Bob Jones

I started to think about that after I posted as initially I assumed that he had some other repayment vehicle, as would be expected for an IO loan.

But if he doesn't, and his problem is that he can't afford to make the necessary capital repayments, ISTM his best course is to convert to an "Equity Release" (no they aren't all bad) loan and come to terms with never paying off the capital until it is recovered from his estate.

tim

tim

Reply to
tim.....

--snip--

I guess you could rent out your property while you are waiting to sell. Then you rent a cheaper place and you could 'save' the difference.

You may be able to talk to your mortgagee to extend the term and hence reduce the payments.

TBH I am surprised that you were given a mortgage with payments that high that would go beyond retirement age.

Reply to
Mark

It's not that uncommon, I know someone in their 50's take on a 20 year mortgage. It is a nominal 60% mortgage so fairly low risk to the lender but not so low risk to the borrower!

Reply to
Fredxx

Thanks to all for the suggestions.

Reply to
Bob Jones

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