When you come to the end of your term on an interest only mortgage, you are contracting to repay the amount you originally borrowed in full. Failure to do this can result in the lender taking steps to repossess your property so that they can get their money back, no matter how loyal a customer you have been to them. Historically, lenders would always grant an extension to the term if you did not have the means to repay the mortgage in full, however, since the credit crunch, lenders have become much more strict and demanding they are repaid on time meaning that people are forced in to selling their homes to repay the mortgage. If you are approaching the end of your interest only term and do not have adequate funds in place to repay the mortgage balance then it may be possible for you to get a term extension mortgage to give you more time in your home. Mortgage Magpie can introduce you to an Expert Adviser that can get you the best interest only mortgage deal for you.
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