CASE STUDY SEVEN - REPLACING YOUR INTEREST ONLY MORTGAGE
Are you in a position where you have been very happy for many years paying off an Interest Only mortgage on your home?
Now that the end of the term is looming, is your lender demanding their money back, but at the same time saying that they cannot extend or re-negotiate a new Interest Only mortgage?
Even though you can still make the repayments?
People come to us saying that they do not want to move from the family home, well not for a few years yet anyway, but their Interest Only mortgage provider, who are usually the biggest high street banks and building societies are demanding their money back or saying that there is a risk of repossession!!!
This shift in the last few years by Interest Only mortgage providers has been due to the Mortgage Market Review carried out by the Financial Conduct Authority and as such the lenders now have to prove affordability of such loans in many more ways than ever before.
This means that many, many people cannot even go to a new mortgage lender and start a new plan, despite having never missed any mortgage payments and feeling that their payments will always be affordable.
At Viva Retirement Solutions we will look at your situation and will advise if a Lifetime Mortgage, Equity Release or Retirement Interest Only (RIO) plan can be used to replace your Interest Only mortgage and allow you to stay in the family home.
We hear you say “But we want to keep making Interest Only payments and want to maybe downsize in the future” - WELL YOU CAN
What our clients in exactly this position have said:
“We were able to make Direct Debit payments for the Interest Only amount so that the interest did not accumulate as this was very important to us”. Having said this, they liked the knowledge that they could stop monthly payments at any time and still make ad-hoc payments whenever they want in the future.
Take the next step and find out more by requesting our FREE brochure.