Interest Only Mortgages

There are many reasons our clients come to us, needing to sell their homes quickly. One of the most common scenarios is that a client was sold an interest only mortgage, which is now coming to an end. Interest only mortgages are still sold today and can work for some people who may have cash tied up in ISAs or savings, which are continually accruing interest, but the application criteria is now much stricter, and these policies are difficult to obtain.

When these policies were sold prior to 2008, the terms may not have been as clearly explained, and the lending may not have been as responsible as it is today. Now, as these older interest only mortgage terms are coming to an end, some clients may find themselves in a difficult situation where they owe a lender the total value of their home in full and have no way to pay it.

We often hear clients state that they were sold an endowment policy alongside their interest only mortgage and that this was expected to pay off the outstanding sum of the property. However, the pay-out from an endowment policy is variable and due to current economic conditions, some clients find that this lump sum may not be enough to pay the remaining money owed, again something which may not have been explained clearly.

For many, this leaves two options; either taking out a new mortgage or selling the property to pay the lender back. Depending on each client’s circumstances, remortgaging your house may not be an option and you may need to consider selling your home and potentially downsizing to avoid repossession or eviction.

What is an interest only mortgage?

Compared to a repayment mortgage, homeowners with interest only mortgages can make heavily reduced monthly payments which only cover the interest on the mortgage. This can be a great option for some, but at the end of the mortgage period, you will owe the lender the full amount that the property was purchased for. To opt for an interest only mortgage today, you need to show the lender a clear plan, detailing how the debt will be paid, and even then, many lenders have stopped selling interest only mortgages altogether as they can be risky.

How can Starr Property Management help?

If you need to sell your home because of an interest only mortgage, our team can quickly make an offer on any property in the UK. From that point, should you wish to accept our offer, we can work with you to ensure that the completion date fits around your life and needs, allowing you enough time to find another home or completing more quickly if needed. You have complete flexibility and control with our fast buy property service and for many this can prevent many months of stress that you may experience if you opted to sell your home through the traditional route.

We understand that this can potentially be a difficult and stressful time for people, who are worried about having their home repossessed or getting into financial difficulty. Just know that you are not alone, there are currently an estimated 1.9 million people in the UK currently paying into interest only mortgages, and many people are now finding themselves in the position where they cannot pay the outstanding debt. Not only is our service quick, accurate, and easy, our teams can deal with your request sensitively and with the utmost discretion.

Our team is formed of experts in the property market, allowing us to make a quick yet accurate valuation of our property. Our clients are usually very happy with the selling price they receive, but if you were expecting more, you have no obligation to accept and are free to sell your property via a different route.

There is no time spent waiting for viewings, offers, or negotiations. Once the agreed completion date arrives and the property ownership, we will make the full cash payment to yourself within 7 days. This allows you to pay the lender the outstanding value of the property, before moving on, free of debt.

About Our UK Quick Sell Property Service

Starr Property Management offers an exceptional service which allows you to sell any property in the UK fast. With over 70 years of combined experience in the property market, we thoroughly understand the sector, allowing us to swiftly value your house and offer a quick completion date, with the sale paid by cash in full. Not only can this be beneficial if you need a quick sale or are having trouble selling your property through an estate agent, but we also pride ourselves on offering excellent service, allowing you to feel confident and relaxed throughout the process.