Financial advice re interest only loan.

[deanna]

I have a £150,000 interest only loan which will have to be repaid shortly. I have very little income but don't want to leave my home. It has been suggested that maybe I could get a reverse mortgage but am not too sure what that is. Any advice greatly appreciated.

[katekoala]

need to know who you have lent this off? Is it a lender regulated by the Credit Consumer Act - if so, and you are in fianancial difficulties (i.e cant pay this off) they are obliged to assist you in accordance with the Lending Code.

[themas]

I can't imagine any lender letting you have that amount without it being secured on your house, so I assume it is secured. If so, your house will be repossessed if you don't pay it back. I've never heard of a reverse mortgage, but if there is sufficient equity in your house then in principle you should be able to get a mortgage to replace the loan. However, you say you have very little income so I wonder how you have made the interest payments on the loan.

[allanp757]

Deanna, you've not said what your house is worth or on what security the money was lent you. Also you've not said how old you are. Be very careful of a reverse mortgage agreement. Though you've said you don't wish to leave your home, if it's worth a lot, your best move could be to sell it, and any unwanted possessions you have, if you can, pay out the loan, and live elsewhere. Try to obtain free financial advice from a counsellor and consider all options available. Best of luck to you.!