You may have several options:
* You could pay the shortfall from savings you have elsewhere
* You could discuss a new repayment period. The quickest way may be to carry on with your previous monthly payment,
although you may be able to agree lower payments
over a longer time. You should avoid extending the term into your retirement
unless you're sure you can afford it.
* You could sell your property to repay the mortgage, and buy a cheaper property so you don't need a mortgage.
In general, provided you keep up the new agreed mortgage payments, you should not lose your home as a result of the shortfall.
Joe has come to the end of his mortgage term and is left owing his mortgage lender £8,000.
The interest rate on his mortgage is 5.95%. Joe could carry on with his current monthly payment
This would repay the remaining capital and interest in five years, and would cost £9,268 in total, but this is more than
Joe wants to
pay every month.
Joe will retire in seven years, so has agreed with his lender that he will repay the £8,000 over seven years and his monthly
repayment will be £116.68, which will cost him £9,000 in total.