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Do You Need Help To Pay Your Interest Only Mortgage?

Interest only mortgages allow you to make just the monthly interest payment on your mortgage for the entire length of the loan. At the end of the terms, repayment of the entire balance is required. It’s a great alternative to a traditional mortgage that offers low monthly payments, but you’ll need to have a solid plan in place to pay back the lump sum when your loan ends.


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.


There are a few options to help you repay your interest only mortgage when the time comes.

Downsizing

First, you can downsize. Selling your current home and moving to one that’s smaller and more affordable will hopefully provide you with enough funds to repay your current mortgage. You can also look to move outside of your current area – not necessarily into a smaller home – but considering other neighbourhoods might save you money overall.

However, some people don’t want to move – they might be too attached to the memories of the home or they’ve lived somewhere their whole life and can’t imagine living anywhere else. Whatever the reason, there are still options for those individuals


Lifetime mortgage

You could choose to take out a lifetime mortgage, which is a way to release equity, securing a loan against your home. This allows you to free up some tax-free money from your home without having to move to reap the benefit. You can choose how your payment is disbursed – one lump sum or smaller, regular increments. Lifetime mortgages are certainly an option, but they’re not the only one.

Well before your loan is set to expire, be sure to contact your financial adviser so they can help you navigate this milestone. They can confirm whether or not your investments will be able to contribute to the funds needed to repay the mortgage. Advisers can also help find additional savings and investments to better prepare you for the upcoming financial responsibility.


Overpayments

You should also contact your mortgage broker to see what assistance they offer. They might have the option of making structured overpayments or can switch you to a part-repayment mortgage sooner, to alleviate some of the hardship.


Speak to us

If you have any concerns about not being able to pay back your full mortgage repayment or find yourself at crunch time, a professional financial adviser will be able to look at all your options with you.


Need help to repay your mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.

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