What happens when my interest only Mortgage endsIf my interest only mortgage ends, what happens?
What happens when my mortgage ends? When you are on a default payback mortgage, then it is likely that you will have repaid your mortgage at the end of the life of the mortgage that you originally arranged - unless you have made an overpayment, dropped back or prolonged the time. As soon as you have disbursed your mortgage, your mortgage provider will take away his fees for your home and your mortgage will give back your ownership certificates if you want them to do so - although there may be a fees for it.
If I have a pure interest mortgage, what happens? As soon as you have reached the end of your pure interest mortgage, your indebtedness will still be overdue. During the entire lifetime of your pure interest mortgage, you have only paid the interest on the mortgage, not the mortgage itself. While this has meant that your lower repayments have been lower than a repay mortgage, it also means that you have a large flat -rate amount to repay when the expression ends.
Which possibilities do I have? It is your responsability to adhere to the reimbursement schedule that you communicated to the creditor when you took out the mortgage. While you may be able to change to a redemption mortgage before your pure mortgage period ends, you need to talk to your creditor about it.
If that'?s the case, then maybe you can make a return payment, but it's probably hard. In order to ask about remortgaging, you need to tell your lender as soon as possible, even if your mortgage has not ended for a while.
It may not be a practical answer, so the only remaining options are to resell your home and use the revenue to pay back the unpaid amount. When you have possessed your home for the 25 year mortgage period on averaging, then it is likely that your real estate value has risen drastically, and you will have a considerable amount remaining to use on a new home.
If you need tips on what happens when your mortgage ends, or if you need help with your interest only mortgage, talk to one of our experts who can help you with the next step.