If you want to own a property that you can call your own, you can explore multiple mortgaging options. This is the most convenient payment option, where a certain amount of money is deducted from your account monthly. You can also explore various options for mortgages that match your economic status.
More About Interest Only Mortgage:
The interest-only mortgage is a highly popular mortgage option. Here, you have to pay the accrued interest on the principal amount each month. Some property owners face a steep challenge in paying off the amount when the term ends. The lender expects you to pay the complete loan amount instead of a lump sum at the end of your term.
Alternate Options to Paying Interest Only Mortgage:
If you find it difficult to pay the amount when the term ends, you can try out some options. For better assistance, you can get help from a professional mortgage advisor in Spalding. The following section provides a detailed take on the loan repayment options.
1. Switch to a Capital Repayment Mortgage: You might think switching to a new mortgage plan can be highly challenging. However, this is a straightforward process, changing your end-of-interest mortgage to a regular repayment product. This switch depends on several factors, including property value, age and income. The duration lasts over 10 to 20 years, and you can repay the capital and the interest.
2. Release Equity: It is a comfortable option for senior creditors with a high-value property. You can instantly release the equity if you are over 55 with an increased property value. This helps you pay the interest-only mortgage without difficulty. You need not worry about any more mortgage repayments; the money released comes as a lifetime loan. It can be paid off when the property owner dies or enters a care home.
3. Selling or Downsizing: Do you have more equity that seems challenging to pay off? Then, selling the property is the most practical solution. Another viable option is to move to a smaller property that you can buy with cash. After the property is sold successfully, you can repay the current interest and remain mortgage-free.
If you find yourself at loggerheads while paying off the end-term amount of your interest-only loan, get the help of an expert. Contact David List Mortgage Consultants Ltd, a well-known mortgage advisor in Spalding. We can provide you with valuable insights into different types of financial situations. For more information, visit our website today.