Hi,
My friend's parents' (64 and 67) three endowments mature this year, the last matures 19th November. Their morgage was £21k (With Barclays/Woolwich) and the latest prediction is that the endowments will be worth approximately £15k so they will owe around £6k.
Paying off the £6k is not an option I'm afraid but they do currently have about £1,500 saved. I would like to know what is the best thing for them.
At present, the state pays the monthly interest under the SMI scheme (£150ish) and they pay the endowments of £50.
Someone helpfully mentioned on here that an option would be to get the/a bank to extend the terms of the mortgage, put the projected endowment payout of £15k in an interest paying account, allow the state to continue to pay the interest on the mortgage and continue to pay the £50 per month to pay off the capital.
Please can I ask how they would go about doing this? I have just read that Barclays have stopped providing interest only mortgages to anyone unless they earn £75k (or £100k between two people) so I would guess that being as my parents have very little income (£226 pension per month between them, this includes pension credit and the state pays their council tax) and are both over 65 then there is zero chance of Barclays agreeing to extend their mortgage, even though the house is worth approximately £140k).
So what should they do? I have advised them to get copies of their credit records to check if there is anything that shouldn't be on there, in preparation for a possible mortggage application later this year.
Any advice would be greatly appreciated, thank you.
My friend's parents' (64 and 67) three endowments mature this year, the last matures 19th November. Their morgage was £21k (With Barclays/Woolwich) and the latest prediction is that the endowments will be worth approximately £15k so they will owe around £6k.
Paying off the £6k is not an option I'm afraid but they do currently have about £1,500 saved. I would like to know what is the best thing for them.
At present, the state pays the monthly interest under the SMI scheme (£150ish) and they pay the endowments of £50.
Someone helpfully mentioned on here that an option would be to get the/a bank to extend the terms of the mortgage, put the projected endowment payout of £15k in an interest paying account, allow the state to continue to pay the interest on the mortgage and continue to pay the £50 per month to pay off the capital.
Please can I ask how they would go about doing this? I have just read that Barclays have stopped providing interest only mortgages to anyone unless they earn £75k (or £100k between two people) so I would guess that being as my parents have very little income (£226 pension per month between them, this includes pension credit and the state pays their council tax) and are both over 65 then there is zero chance of Barclays agreeing to extend their mortgage, even though the house is worth approximately £140k).
So what should they do? I have advised them to get copies of their credit records to check if there is anything that shouldn't be on there, in preparation for a possible mortggage application later this year.
Any advice would be greatly appreciated, thank you.
