Stuck In An Interest Only Mortgage.

[crackernut2]

I have an interest only mortgage. my house is valued at £125.000 and would like to get a lifetime mortgage so that I can pay off all my debts and have peace of mind and live my remaining days worry free.
I don't want to sell up and have to find somewhere else to live as I've lived here for 42 years and cannot bear the thought of leaving! I feel trapped in this interest only mortgage and would greatly appreciate any advice anyone can offer.
Many thanks.

[bednobs]

have you spoken to a broker?

[Buenchico]

The Financial Conduct Authority is currently examining ways to help in your situation - but nothing has yet been decided:
https://www.which.co.uk/news/2017/09/mortgaged-for-a-lifetime-interest-only-mortgages-to-last-into-retirement/

However some lenders (e.g. Santander) already have ways of doing what you want:
http://www.thisismoney.co.uk/money/mortgageshome/article-3686044/Santander-borrowers-switch-lifetime-mortgage-rates-starting-just-2-96.html

So the best starting point might be to speak to your lender.

Alternatively, phone the (impartial, Government-backed) Money Advice Service, free of charge, on 0800 138 7777. (0800-2000 Mon-Fri. 0900-1300 Sat).

[ubasses]

So much depends on your age and the size of the mortgage against the value of the property. In simple terms the younger you are the smaller the percentage of the house value can be lent. It is also more or less the same as you have now except you do not make any repayments and the interest accumulates until the sale of the property. You need to make sure that the Company you choose guarantees against negative equity to ensure that your Estate does not have a debt to pay at the end.
There are so many things to think about like what happens if you need to go into a Care Home amongst others.
The best thing you can do is speak to a Financial Adviser who will be able to give you chapter and verse about the different schemes and help- you reach a decision. There will also be fees to pay.

[fiction-factory]

Your mortgage provider must have been writing to you about how you are going to pay off the capital of your mortgage when it ends and will have suggested options such as changing to repayment. Have a look at those communiciations or talk to them- and if they can't help you look to switch provider.

[fiction-factory]

Maybe i've misunderstood. I assumed you wanted to switch from interest only as you say you are stuck in it and you want to repay your debt, by which i assumed you meant capital. But you then mentiona lifetime mortgage and Buenchico's answer is about extending interest only mortgages for those who can't repay. That is another option

[ToraToraTora]

just over pay it what you can when you can then it becomes a flexible repayment mortgage.