End of interest only mortgage

[NKB]

Hello all the best for the new year!
I have an interest-only mortgage with clydesdale which is set to expire in March 2026.
To provide some context, my husband passed away eight years ago, and since that time, I have been living in the property and managing the mortgage payments, albeit with some difficulties.
As the expiration date approaches, I would like to understand my options moving forward as I cannot pay the £106000 i am trying to sell but do I have any rights to stay in the property. My daughter who is a disabled veteran also lives with me. Can any one recommend a solicitor who could help me.
thank you in advance

[PallasAthena]

What area of the UK do you live in please.

[atticus]

The capital is going to have to be repaid sooner or later. Clydesdale will be entitled to take court action to obtain possession of the property if you are not able to repay the capital when the term ends.

I suggest that you should be speaking to a good financial adviser, to try to establish what can be done.

[NKB]

Good morning thank you for replying , I live in Walthamstow . I was hoping to see if there was a way I could delay the mortgage company at least until it’s sold do i not have any rights at all ?The agreement was with my late husband alone . Regarding a financial advisor I have spoken to more than one and my finances do not afford me the ability to remortgage .

thank you

[atticus]

If you are selling the property, then keep the mortgage lender informed. I am sure that they will bear with you.

[HariSeldon]

I have an interest-only mortgage with clydesdale which is set to expire in March 2026. I cannot pay the £106000 i am trying to sell but do I have any rights to stay in the property.

The bottom line is that you won't get kicked out of the property in March 2026 but you will be evicted eventually unless you come to an agreement with the lender. You really want this to happen on your terms, not the lender's, otherwise the stress and financial cost will be so much more.

To answer your specific question, you have the right to stay in the property until a court orders otherwise and while the courts and lender may have some sympathy for your predicament (and I say the following as a reality check, not to be mean) they will be very conscious that you have had at least eight years in which to prepare for this; eviction is pretty much a foregone conclusion.

As Atticus has said, at some point the £106,000 debt has to be paid and the longer it remains unpaid and dragged through the courts, the higher that debt will become. Assuming that the property is worth more than the £106,000 debt then every £1,000 in interest and legal costs is £1,000 you'll be worse off when the property is finally sold so you really want to take control, be proactive, get the property sold and move on with the next chapter in your life.

Just as an aside, only last year I sold a property and had the cash in the bank just seven weeks after accepting an offer. It can be done if you put your mind to it. You no longer have the luxury of being able to hold out for the best price but you can bet your bottom dollar that any lower price you accept for a quick sale is almost certainly going to be a lot more than the lender will accept if this turns into a forced sale.

[HariSeldon]

I was hoping to see if there was a way I could delay the mortgage company at least until it’s sold do i not have any rights at all ?

Your only rights are that the lender must treat you fairly and follow due process.

You have no legal right to make them wait until the property is sold but depending on circumstances they may be prepared to do so if you engage with them proactively. Obviously they won't wait forever and it's likely interest will continue to accrue at a less than favourable rate so again it's very much in your interest to get the property sold sooner rather than later.

[Tofros]

Did your husband not have life assurance to cover the outstanding mortgage capital? If so, what happened to that? Mortgage companies usually insist on it and having their interest noted on it. Is it possible that there was a policy you did not know about?