10 year term mortgage can’t now be extended – help please
I read with interest Dene’s post in respect to exceeding the term, repossession by NRAM and his regrettable position.
9 years ago I took a 10 year term mortgage at 0.5% above base. This was arranged direct with Woolwich over the phone –a different era!
This is a substantial interest only mortgage which my then income comfortably supported. Unfortunately that is no longer the case. I had a brief conversation with the Woolwich call centre and asked whether this could be extended even if it was on a standard variable rate – the answer was no.
I have never missed a payment and the loan to value ratio is circa 30%. Of course I can sell and use the equity to purchase a smaller home, but I love the house and would be sorry to have to move.
I can’t recall receiving any specific advice over the phone at the time although the paperwork probably has reference to making provisions to pay off the loan.
I would welcome any suggestions from members how I might be able to remain in my lovely home.
Stephen
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Member Since February 2011 - Comments: 3454 - Articles: 286
10:33 AM, 15th August 2016, About 10 years ago
Hi Stephen,
Unlike Dene, as this was a main residence mortgage it would definitely have been a regulated sale under the FSA (now FCA). You will therefore have much more recourse to protection as a consumer.
You will have received copies of the Full Fact Find, Suitability Letter and KFI. I recommend you dig these out and see what in particular you said about how and when you are going to repay the loan and what was recommended. You can ask for copies but the Bank are not under obligation to keep them for anything longer than 7 years unless there was also a pension sale attached.
If these don’t match up you should ask for a copy of the Woolwich complaints procedure and instigate the process.
Member Since January 2016 - Comments: 3
11:36 AM, 15th August 2016, About 10 years ago
Neil,
I am gratful for your speady response and advice.
As suggested I will dig out all the paperwork and if I may, revert with any queries.
Your website is very informative and I have happily made a donation to help continue with your good work.
Stephen
Member Since February 2011 - Comments: 3454 - Articles: 286
11:37 AM, 15th August 2016, About 10 years ago
Thank you and no problem 🙂
Member Since July 2015 - Comments: 344
2:09 AM, 16th August 2016, About 10 years ago
I do not think you will have much luck with Barclay’s but a mortgage broker might find you something.
But the fundamental question will be how do you expect to repay the mortgage principal? If you do not have a plan for this you will eventually have to sell up and down size.
Member Since August 2013 - Comments: 161
5:49 PM, 20th August 2016, About 10 years ago
What H B said. What was your plan to pay off the mortgage after 10 years? Why hasn’t that plan materialised?
As it’s your home, why can’t you simply approach another lender and get a normal 25 years residential mortgage on it given the equity you say is in the property, and pay off the current loan?
Member Since May 2014 - Comments: 201
5:21 PM, 12th September 2016, About 10 years ago
It’s not a question of luck with Woolwich it’s all down to persistence. I’m soon to be 70 and my ten year mortgage had almost expired. I persisted and persisted and they’ve extended it for a further 5-years.
Obviously the lending criteria has changed in the last ten years and you would need to ask them the reason(s) for them refusing to extend your loan.
Member Since June 2013 - Comments: 381 - Articles: 61
9:24 PM, 13th September 2016, About 10 years ago
Stephen / Martin? If you have not yet solved your problem, contact any of our Team via my profile link. Our FCA authorised Advisers are here to help (if possible).