What happens if you haven't paid your mortgage off by the end of the term?

[Chicchicchicchiclana]

As per thread title.

What is the procedure if you get to the end of your mortgage term and there is still money outstanding?

What does the bank or building society do?

Probably kill you 🤷‍♀️

Reposess maybe?

You would have to Remortgage if you are able to or sell to pay back the mortgage,

You have to pay it off with savings, remortgage, or sell it and pay the bank what you owe.

How can you not have enough to pay it off?

I presume you're referring to an interest only mortgage? As this couldn't happen with repayment mortgage.

Presumably you are talking about an endowment or interest only mortgage, with a repayment mortgage once you reach the end of the term the balance is 0.

shouldn't hapoen with a repayment mortgage and interest only mortgages are becoming very rare these days.

I guess stern letters from the lender with warnings about a potential shortfall from a few years prior the end of term.

How old are you?
If you are still able to get a mortgage - remortgage - and make sure it gets paid off by the end of the term.
If you cannot remortgage and can’t find a way of paying it off, most likely you will need to sell it.

The bank will repossess. They send letters years beforehand warning you to check any endorsements.

I'm talking about a 25 year mortgage that we have sometimes paid repayment, sometimes interest only, sometimes with mortgage holiday (thanks redundancy, self employment and covid).

By current calculations there will be a shortfall at the end of term. I'm actually only interested in the building society procedure when we get to, say, the last 6 months of term. Not comments on how come we didn't do repayment from day 1. We have never extended this mortgage for other finance btw before anyone jumps in.

@StephenBelafonte "how can you not have enough to pay it off?"

We pissed it all up the wall on coke and dancing girls, how do you think?

You have make up the calculated shortfall.

Re-mortgage or sell the house before the mortgage ends to pay back the lender.

Are you likely to still be able to get a mortgage beyond the end of the mortgage, often you can get one until 75 now. You will just need to renegotiate when your term ends on your mortgage. They will want all the money but probably will want to negotiate rather than repossess. How many years do you have left?

[quote Chicchicchicchiclana]@StephenBelafonte "how can you not have enough to pay it off?"

We pissed it all up the wall on coke and dancing girls, how do you think?[/quote]
Great work

We're in same boat. Interest only. Sometimes we pay more, sometimes not. I'm sure something will turn up by the end of term. Too soon to worry yet. If it comes to it, we'll downsize.

start with the yearly mortgage statements.
there is usually some blurb about options.

good luck!

We pissed it all up the wall on coke and dancing girls fibber!

How many more years do you have until the 25 years are up? Could you make overpayments? even just 5% over every month might help

You have to pay the difference or remortgage onto a longer term with permission of the lender.

If you have equity in your home and a good LTV ratio you could consider remortgaging it now while the rates of interest are do low. You can get 5-10 year fixed rates do if rates go up you will still pay the same. Very unlikely to go lower as lowest it's ever been before right now. How many years do you.have left to pay? Eg if you have 12 years remortgage.over 15 years. Don't leave it until you are in last 10 years as they are less likely to allow you to do it. If you get to end you might have to sell and that might not be what you want.

We pissed it all up the wall on coke and dancing girls, how do you think?

Amazing response!

Remortgage if you qualify or sell the property and repay from the equity. Why would you need to stay in the same house at the end of the 25 year term?

Jokes aside, my mortgage term goes until my husband is 75 and me 72. No joke. I would try to get a mortgage now for the rest.

Is it worth extending the term now/soon? You could shorten it again when your financial situation improves?

Take out a new mortgage or sell to repay the short fall. Depends on the shortfall though. My parents got very grumpy letters from the building society as their mortgage was ending and endowment hadn’t covered it. Dm and df arranged to meet at the building society to look at options only to discover the shortfall was £300 and as dad was on £80k a year (which the building society could see via the other accounts) they should have known it would be covered rather than threatening repossession.

Send the dancing girls to the bank with some coke. Maybe they'll charm the bank for you?

At the end of the 25 years, you will need to pay off whatever is outstanding. So you’d need to either sell the house (in enough time to pay off the mortgage) or renegotiate the loan (subject to being able to get a new term from a lender).

Better is to make sure you’re not in that position by upping repayments over a longer period.

What’s your actual position, OP?