Interest only mortgage term ended and husband refuses to downsize

Daisy for your daughter to take out a mortgage on your house, it would have to be sold to her so that she owned it, not you and your husband and if you continued to live there you would have to pay her the market rent, if it was to be exempt from Inheritance tax when you die. And HMRC check to make sure the rent is paid and that it is the market rent.

She would also need to have an income of between £60-70,000 a year, plus, a deposit, probably around £30,000 to get the mortgage. Plus, of course all the other costs of buying.

This is fantastical nonsense. You can't "take on" a mortgage. Your daughter would have to apply for one and then purchase your house just as any stranger would do. Additionally, it is highly unlikely that she's earning anywhere near enough if she's just left university. Daisy, the fact that you think this is remotely feasible makes me despair. It sounds as though both you and your DH are living in cloud cuckoo land.

GSM I share your feelings about this man asking his child to bale him out. Poor Daisy - I feel that she has tough times ahead.

Good news Daisy that you are making progress.
You will just have to keep at it.
And I suggest you make sure your daughter is aware and can see the sense.

See if you can find somewhere (nice) to downsize to.
🤞

I’m glad to hear that your husband is beginning to see the light, but his idea of your daughter taking on the mortgage is totally unrealistic. First, there is nothing to take on - the mortgage term has ended and the money borrowed must now be repaid; a new mortgage would be needed. Secondly, your daughter would need to own the property in order to mortgage it. Thirdly, she is unlikely to be earning enough to qualify for a mortgage large enough to repay the existing one and all the debts. Fourthly, why the hell should she? He is just trying to use her as a convenient way to repay his debts and not have to move.

He should be ashamed of trying to use her in that way.

Thanks to everyone for all your advice. I printed out GSM's reply to my post and showed it to dh. He does now seem to be coming around to the possibility of our house being sold now, and is no longer as aggressively opposed to it as he initially was.

Dh was initially employed in hospitality management but left to follow his dream of opening his own business years ago. The business had its ups and downs. During bad times he remortgaged our property to fund it. He refused to sell the business and the landlord eventually took the commercial premises back when the rent was not paid.

I will be contacting estate agents shortly. Our daughter, our only child who is in her early twenties, is supportive of the house being sold. Dh has suggested that she take on the mortgage (his friend has done similar with his son) but she is not keen on the idea and neither am I. She has only recently left university and should not be tied to such a large financial commitment at such a young age.

Glad you came back Daisy, sorry that you have found the situation worse than you thought.
It sounds as though your husband is the problem, I hope you can pursuade him to take a realistic view of your circumstances.

Germanshepherdsmum

He is wrong. If the mortgage term has ended the lender will want its money back - therefore it is sending letters to that effect. You both entered into a legally binding contract to repay the amount of the loan on a set date and in the meantime to pay interest. That contract has now been breached. If you don’t repay what you owe the lender will obtain a possession order from the court and you will be evicted and the house sold over your heads.

Taking out a lifetime mortgage from an equity release company might be an option if you can get one and afford the interest payments. I would hazard a guess that as your husband is retired that may not be affordable, and remember that money spent on interest is money you don’t have to enjoy life.

My advice would be to make your husband understand the debt must be repaid and that is best done by downsizing. You or he must communicate with the lender immediately or you will soon hear that they are applying for possession. I suggest you get your husband to phone them without delay, which will leave him in no doubt that he can’t just keep paying interest now.

I totally agree with GSM.

NotSpaghetti* Thank you, I did miss the update and am apology to Daisy as well.

Can I ask what your DH spends money on that has led to all this debt? Because it may be important to future decisions in your life. is the cause one -off or an addiction - like -gardening. If it is a one-off, putting lots of money into a speculative investment and you know he will never do it again, well OK If it an addiction, that is more problematic.

The most important thing for you is to protect your share of the family assets and for that you need legal and financial advice. I would start by visiting Citizen's Advice, or a local law centre to find out what you can do. I am not sure what would be advised but it would centre on how the house is owned and how far you are responsible for the debts he has run up.

It will also help you in dealing with his refusal to see what is acttually happening and could happen. Perhaps you saying that you are seeking to get legal advice to protect your share of the property, might be the shock he needs, but if things get too had you may need to consider a legal separation, even if you continue to live in the same house until it is sold.

This situation sounds really serious.. I would get legal advise as you may find your husband has taken large loans.. You really need to protect your future..

M0nica I think maybe you missed Daisy's update.
She has called her lender and is trying to take action- but has had more bad news.
What a mess.

Daisy I hope there is enough equity to sort out the (other) debts as well. 🤞

Leeds Building Society is offering an interest only retirement
mortgages for people in your situation.

ie., Borrowers who are existing interest only customer unable to pay the balance but can maintain their payment.

Have a look at their link:

www.leedsbuildingsociety.co.uk/intermediaries/products/retirement-mortgages/

Daisy is there anyone your husband will listen to who will give him a wake up call how you could end up homeless . I know that's extreme but your situation is especially with your husband taking out loans you know knowing about. You need to find out how much debt you are in.

Like others have said if your house is repossessed you won't get as much as you think as the lender will only be interested in the amount of money you owe. You could end up with nothing.

Think Daisy should get 3 estate agents to come and value the house giving a realistic assessment
This will a, give her some idea of figures b, help her DH become aware of reality c, she can tell her lender of her actions.
Also, long shot, she could let her friends know they might be selling is anyone interested?
My father saved a lot of money buying and selling to people he knew.
And continue talking to her DH. He is 72 perhaps he is starting to need more support with things.
It might be a relief for him to realise he's not alone and there will be a solution.
Again best wishes.

Don’t try to market the house without your husband in agreement, you have got to make him realize how bad the situation is. Make sure you know exactly what his liabilities are, he could still be concealing some, forget all about remortgaging, your income is too low.

From what you say, selling and clearing the mortgage might enable you to buy a small property outright, you should aim to do that. When a property is repossessed the lender will sell for whatever they can get, any shortfall comes out of your account, so the £500k equity you think you have could be a lot less.

Various thoughts. You are only 62, could you work full time for a while?
Think you need to do an income and expenditure and see if your lender can come up with something. Online they talk about extending interest only mortgages. But really it sounds as though downsizing might be a good idea.
Think you have to take the lead here.
All the best.

Sell the house as soon as possible otherwise you will lose it along with any equity. You will be evicted and the mortgage company will sell it as a repossession only for the amount they are owed. You will lose everything.

what would happen if OP put the house on the market without telling husband, or does he also have to sign the agreement with the estate agent. ??
is he fully compos mentis ?
could you separate your finances ?
legal separation ?
GSM, how could OP limit her liability ?
or not poss ??

but OP has taken the advice to contact the lender.
that was this pm; i don't think they've really had much time to do anything else yet. ?

It is really imperative that you get your house on the market this won’t go away. If the mortgage company repossess they will sell it for what they can get and if there is any shortfall on the amount of the loan you will be liable for this.
Taking into account the other loans unless you earn a lot of money part time or your husband has a very generous pension the chances of remortgaging are nil. You would also need a very short term mortgage considering your ages.

I have said it before but I think posters like this one somehow expect us to come up with a solution that works like a 'get out of jail free' card. A solution that sorts all their problems out without them having to do anything.

When we don't, because such a solution doesn't exist, but instead give them the good hard advice that everyone else has given them and they do not want to hear, the OP just moves on to see if some other group or forum can do the magic.

Blimey Daisy you’re between the Devil and the deep blue sea here!
This other borrowing has put another spanner in the works. Obviously your DH can’t be trusted - at least where money’s involved.
It seems clear cut (from a financial angle) that the house must be sold and quickly to pay off the outstanding mortgage,
How you deal with your DH’s debts - presumably taken out, behind your back, in his own name, so you have no liability - is another issue.

Best of luck, hope you get this sorted. If my DH had taken out loans without my knowledge, after I calmed down I wouldn't hesitate in getting the house on the market regardless what he thinks. He's lost his bargaining chip doing this.

Oh Daisy I am so sorry to read your update.
I'm glad that you took advice and contacted your lender but it sounds as if the situation has changed and become more difficult.
Wishing you the best possible outcome.

I’m not a financial expert, but I had a similar issue with my own mortgage a while back. My partner and I were worried about the same thing. From what I understand, if you’re only paying interest, they can’t just repossess the house, but you definitely need to stay on top of things. I’d recommend getting some advice from a mortgage advisor or a legal professional who can help you navigate this situation. It helped us a lot to get a clear plan moving forward.