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LondonlawyerJ
LondonlawyerJ, Solicitor
Category: Property Law
Satisfied Customers: 814
Experience:  Experienced solicitor
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My father is 65 years old, he has an interest only mortgage

Resolved Question:

My father is 65 years old, he has an interest only mortgage that expires in Dec 2016. Due to a change in circumstances he is unable to pay off the full amount of £120,000 by this date so he has contacted the mortgage provider an put forward several options to them to redeem the mortgage but they have all been declined. The only option he has been given is to sell the property. My question is, if he is able to repay the majority of the mortgage, say £100,000, will the mortgage provide still have the right to force him to sell or repossess the house due to the remaining outstanding amount or will they be able to extend the mortgage for him? Basically what are his rights in this situation?
Submitted: 2 years ago.
Category: Property Law
Expert:  LondonlawyerJ replied 2 years ago.
Hello, I am a solicitor with 20 years experience. I will try to answer this for you.
You need to look at the precise terms of he mortgage as this is a contract law issue. It will be governed by the precise terms of the contract,. There are no general legal provisions extending rights for the occupier in these situations.
Generally if the borrower cannot pay off the mortgage on the date required in full then the bank is entitled to take action if they wish to do so.
Whether he is able to negotiate a further mortgage or not depends on the will of the bank.
I suspect this is not what you wanted to hear but it is important I give you a straight answer rather than raising false hope.
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