An increasing problem across the whole of the UK since the credit crunch is a lot of the mortgage Lenders no longer offer mortgages and more and more Homeowners are struggling with their mortgages because they are coming to the end of their mortgage term, which means that the time the Lender has agreed to let you borrow the money has come to an end.
Once the contractual end date for the mortgage has arrived, everything changes and the Lender has far more power against you and when they take Repossession action against you through the Court, the Judge may well understand your plea for more time however he will lack the Legal Authority to intervene without a very specifically laid out defence.
How Did My Mortgage Expire
A number of Homeowners believe that if their mortgage is based on Interest Only, then it never ends, however, even though you are not actually paying off the loan, there will be a date when the contract ends and the whole loan has to be repaid. This is also the case when a Repayment mortgage has any arrears outstanding or charges that have not been paid when the load ends, the whole amount becomes payable.
The reason the situation is arising is due to the credit crunch. Most of the companies that were lending money, no longer function in that capacity and so cannot extend your loan term. Additionally, there are no bad credit lenders to switch to if you have been in arrears or have any form of bad credit.
In fact, as many as 29% of Homeowners expect to be continue paying a mortgage after they expect to retire. However even the Lenders that still offer mortgages discriminate against older buyers and it may not be an option.
How it can be solved
Each Lenders will tackle the expiry of a mortgage differently, and a lot depends on how you have managed your account. When you call us, we will be able to discuss what is likely to happen moving forward.
Most Homeowners, by the time they contact us, have asked their Lender the obvious question of extending the mortgage term, and have been refused for the reasons above. We can assess the structure of your mortgage and what your options are moving forward and describe the relevant solutions to you.
A lot of Homeowners do not contact us until the Lender has taken eviction action, we have the knowledge and power to stop the eviction, but cannot help you unless you call us.