Mortgage lender seeking repayment as lender reaches 58?

[Mr Squarekins]

A relative mentioned this week that she'd been 'called in' for a meeting with her mortgage lender, a high st building society to ask about what her plans are to repay her mortgage. She turned 58 in the past few weeks.

Is this likely to be true? She reckoned that they proposed that she take some funds from her savings account with the same society to pay a chunk off.

Never heard if this before. Likely to be true or rubbish?

[rix]

Interest only?

[scot_aln]

or does the current term go beyond state pension entitlement?

[Alex Z]

If the term of the mortgage and amount outstanding would take her past retirement age, it feels fairly sensible that the bank has this discussion.

[AlexC1981]

Alex Z said:

If the term of the mortgage and amount outstanding would take her past retirement age, it feels fairly sensible that the bank has this discussion.

More sensible to have had the discussion when she applied for the mortgage.

[Sheepshanks]

Mr Squarekins said:

Likely to be true or rubbish?

Why might she might have made it up?

[Ziplobb]

as an ex HSBC employee who used to sell mortgages this is an entirely reasonably request particularly if its coming to the end of term, is interest only and on looking back at the account history there have been no reductions in capital. Normally contact will have been made by letter over a period of time to establish the above.

[Douglas Quaid]

She’s your relative, only you know if she’s a liar or not, none of us know her.

[Jamescrs]

Seems a reasonable request depending on how the relative has structured the mortgage,

I think there are a lot of people on interest only without a plan for repayment.

[Simpo Two]

Jamescrs said:

I think there are a lot of people on interest only without a plan for repayment.

That seems a bit careless of the lenders.

[Mr E]

Simpo Two said:

That seems a bit careless of the lenders.

They have a loan secured against an asset that is likely worth significantly more than the money owed. Zero risk other than reputational “bank repossesses grannies house” headlines in the daily mail

[Simpo Two]

Mr E said:

They have a loan secured against an asset that is likely worth significantly more than the money owed. Zero risk other than reputational bank repossesses grannies house headlines in the daily mail

If the asset is their house they're a bit buggered. Equity release then... and no doubt the lender has the salesman lined up...

[Jamescrs]

Simpo Two said:

That seems a bit careless of the lenders.

Whilst I agree since when has that ever stopped them

[ChocolateFrog]

Mr E said:

Simpo Two said:

That seems a bit careless of the lenders.

They have a loan secured against an asset that is likely worth significantly more than the money owed. Zero risk other than reputational bank repossesses grannies house headlines in the daily mail

That doesn't seem zero risk to me.

[Agent57]

"How is this debt going to be repaid?" should be a question every lender asks at regular intervals.

"How am I going to repay this debt?" should be a question every borrower asks.

Sadly too many people are not asking these questions.