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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 16967
Experience:  I have been practising for 30 years.
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My partner has a mortgage interest only and it's now come to

Customer Question

Hi My partner has a mortgage interest only and it's now come to the end of its term he has been trying to sell the property,but has had no luck ad yet he would like to extend the mortgage but has been told he needs to speak to citizens advice bureau can you help him please
JA: What steps has your partner taken so far? Has he prepared or filed any paperwork?
Customer: He has rang the mortgage company and send them a letter explaining he needs to extend the term they haven't hot back to him as yet. He rents out the property and has never missed any payments so he would like to extend his agreement, is it straight forward or complicated? With covid he didn't have any time to sort this out. Thanks Marie
JA: Where is the property located?
Customer: Liverpool
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No I dont think so
Submitted: 12 days ago.
Category: Law
Customer: replied 11 days ago.
Thank you
Expert:  F E Smith replied 11 days ago.

Welcome to Just Answer.

I will be happy to assist with your question today. I need sometime to consider this and compose a response. There is NO need to wait online becauseyou will get an email when I respond. Sometimes it will be minutes, sometimeslonger.

I apologise for any unavoidable delay, but rest assured I havenot forgotten your question.

is this a BTL mortgage or residential?

is he able to remortgage?

and why do you believe he can extend the term?

Expert:  F E Smith replied 6 days ago.

It would assist be if I had some more information from you but meanwhile I will answer you as far as I can.

Many people, like your partner, have interest only mortgages and they didn’t get, contrary to advice, a repayment vehicle to pay the mortgages at the end of the term and I don’t know about your partner but I know many people (a lot personally) who have simply buried their heads in the sand.

I don’t know any lender who will not extend the term. However some will extend almost indefinitely and others will threaten an application for possession quite early on. Never try to deal with this on the telephone unless you follow the telephone call in writing so in that respect he has done the right thing.

If he has not had a satisfactory reply from the lender within 8 weeks he then needs to complain to the Financial ombudsman about the lack of reply. If they refuse to extend, it’s a complaint because the courts and the Financial Conduct Authority has told the lenders that they got the borrowers into this situation and they have to manage it without just going straight for possession.

Extending the term of the mortgage is no big deal, they send him a piece of paper and he signs it usually.

I am glad to help.

Hopefully, I have answered your query in a way that is simple and easy to understand.

I would be more than happy to clarify anything else for you. In the meantime, thank you once again for using our services.

Please note that my answer is based strictly on the information that you have given me. If you have not given me all the information, then my answer may be incomplete or wrong.

I am happy to answer any specific points arising from this.

If you still need any points clarifying, I will be happy to reply because the thread does not close. In fact, it remains open indefinitely.

I am always happy to answer any further questions you have on any new thread in which case, please start your question with, “ For FES only”

You don’t need to do it on this thread, just a new thread. You have me exclusively on this one.

Thank you.

Best wishes.

FES