Thousands of interest only loans are coming to maturity and figures suggest that around a third of interest-only homeowners will face a shortfall of more than £50,000. We recommended that those who can should make the switch to a repayment mortgage now, and start paying off that shortfall. Overpaying on the mortgage could also be an option, as could extending the mortgage term.
Some homeowners may consider moving to a smaller property as a way of reducing their debt, while there are potential advantages such as cutting household bills or clearing an interest-only shortfall, borrowers were urged to factor in the costs of moving home.
The decision to downsize is one of the biggest that older homeowners will ever face, and growing numbers are preparing to make the move.
Almost half of all pensioners would consider moving to a smaller home, new research suggests, and the numbers are expected to grow.
There are attractions to downsizing, as you can raise tens of thousands of pounds from selling up, and make everyday life easier by, for instance, swapping a large family home for something smaller and cheaper to run.
However, there are disadvantages, because downsizing costs time, energy and money, many pensioners are discouraged from downsizing by the cost of stamp duty.
Speaking to one of our mortgage expects could be invaluable before making this important decision.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth