Hi, my name is Angel01! Serco mortgage coming to end

Angel01
Angel01 Online Community Member Posts: 1 Listener
edited November 2024 in Money and bills

hi all, my mortgage is finishing next yr and I am in a panic. Serco have been paying the interest of my mortgage and I understand I have to get a new mortgage ‘mortgage for life’ and pay serco back the interest or sell my flat and try and live off of any equity (£50k and lose my disability payments. I am 63 so do not qualify for pension yet. I’m panicking because I do not know what will happen to me. Are there any other options with what I can do? I still owe £100k mortgage on my flat plus £15k to serco are there any other options ? Thanks

Comments

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,489 Championing

    Hi,

    I'm not sure this is the best forum to offer advice on mortgages. Have you tried any other advice services so far?

    Personally I'm not sure a mortgage lender would offer £100k to a 63 year old. A lifetime mortgage does mean that it wouldn't have to be paid back until you pass away or go into care. Though I think those are generally for smaller amounts.

    If you mean PIP for disability payments, that isn't means tested and wouldn't be affected by selling your property and having money in the bank. You wouldn't be entitled to any means tested benefits such as Universal Credit unless you have under £16k though.

    Hopefully another member can offer some more advice on this situation.

  • MW123
    MW123 Scope Member Posts: 1,223 Championing

    @Angel01

    I understand that this is a worrying situation for you. I strongly recommend speaking with a financial advisor who can review the specific details of your property. They will be able to explain the full range of options available to you. One option could be a lifetime mortgage or equity release, which would allow you to continue living in the property without making monthly mortgage payments. With this arrangement, no repayments would be required until your passing or if you move into care, at which point the property would be sold and any outstanding balance would be settled.

    Most lifetime mortgages or equity release schemes include a no negative equity guarantee. This means that if the value of your home decreases or if you owe more than the property is worth when it is sold, you will never be required to pay back more than the sale price of the property. The lender absorbs the loss.

    However, without fully understanding your circumstances, such as whether you would be comfortable living in your flat for many years, it’s difficult to provide specific advice. A financial advisor can take all these factors into account and offer tailored guidance to help you make an informed decision that’s right for you.

  • Rosie_Scope
    Rosie_Scope Posts: 5,876 Scope Online Community Coordinator

    Hi @Angel01, welcome to the community. Sorry to hear you're in a difficult situation with your housing. As others have said, it does sound like the best idea would be to talk to a financial advisor to see if they can help you sort out a plan.

    You could also try Citizens Advice. Even if they can't help with everything, they might be able to point you in the direction of someone who can.

    Hope you can get something sorted soon 😊

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