Mortgage for the old fogies

The conundrum of how to re-pay your mortgage continues to rumble on. If you are one of many facing the uncertainty of what to do then recent news from The Co-operative Bank will bring some light relief to what has been identified as a ticking time bomb. Lenders who were happy to sell us interest only mortgages back in the day are now sending letters with quite reminders of the clock and asking what are you doing to repay the capital. For many of us who understand that living mortgage free is now a pipe dream we need to find a home for our mortgage. The news that the Co-op have struck a deal with Legal & General which will allow the bank to offer its lifetime mortgages as an option for the bank's interest only customers aged 55 and over is certainly overdue in an industry that must be concerned at how to reduce its exposure to the baby boomers. It is surprising that it has taken so long for the lenders to come up with a plan. At last some at least have realised that they bullying their customers into moving to another lender is not the best option and that there is another way.

Let's hope that this is the start of more such deals that will allow your mother and father to remain in their house rather than in your spare bedroom!