Selling a House at the end of an Interest only mortgage term

Are you on an interest-only mortgage? Is it coming to the end of its term? 

This is a very difficult situation for many people throughout South Wales.

Interest-only mortgages were really popular prior to the financial crisis in 2007 and 2008. Many people took on between 15 and 20-year mortgages in the late 90s and early 2000s, which are now at the end of term. 

If you haven’t got a way to pay off the mortgage (with many mortgage payments remaining), meaning you’ve got no repayment plan or anything similar to this in place, you will be put into a situation where you will need to sell the property. 

We are often contacted by vendors who have been sent notice by the mortgage lender that they have either got to pay the balance or sell the property because the actual loan needs to be settled. This differs from negative equity that you can read about here.

Mark King Properties can help you with this. 

I can come out and have a look at your property, and I will be able to give you an immediate cash offer. We can arrange to complete a sale within a time frame that suits you. For instance, this isn’t a problem if you want up to three months from the initial offer. 

We are also able to make it possible to exchange contracts with you early and release some of the money to you. This can be up to 10% of the purchase price so that you’ve got money to pay your rental advance and your deposit for instance if you are moving into a rental. 

Whilst the process of your sale with us is underway, we work closely with a team of excellent solicitors who are very used to dealing with this kind of situation. If you have come to the end of the term of your mortgage, meaning that the date that you are due to make your last payment has already passed, our solicitor will contact your lender on your behalf and reassure your lender that the property is sold and is being taken care of, putting your mind at ease. 

We have successfully dealt with hundreds of transactions through our trusted solicitors;  

Insight Law in Cardiff.

They have extensive experience, especially dealing with us as the buyer; they help to assure you that the price with us is fixed, meaning that we are not going to reduce the agreed price before completion and that we are able to complete on the agreed day. 

It is very important that your lender knows that they have a proper exit plan at this point. This outcome will prevent the lender from going to court and applying for possession of the property from you. 

If you are in that situation, and you are looking to sell your property, please get in touch. You can click the link below to fill in the online form, or you can contact me using my office number on 02920 501 001.