Hi Marialo
This is exactly the type of case I have been lobbying the Central Bank, the lenders and the politicians about.
You have a mortgage of €187k
The interest at 5% is €800 per month.
This is a lot less than it would cost you to rent a house in any way comparable.
Are you able to pay the €800 per month.
My argument is that while you can pay €800 per month, your mortgage is sustainable. As it's a SVR mortgage, KBC is not losing anything on it. There is plenty of equity in the house, so they are taking no risk.
Take your house off the mortgage.
Read this post and the links it refers to
Central Bank Governor agrees that long interest-only is a sustainable solution
Write to the Governor of the Central Bank and tell him about your situation.
Contact your politicians and tell them that people in your situation need to be regarded as sustainable.
If you pay the interest in full, I think it unlikely that KBC will initiate formal legal proceedings.
If they do, I think it unlikely that a judge would grant them possession.
The next problem is that you are 60 and only have 5 working years left, how can you make the repayments in 5 years time.
This will be an issue to deal with in 5 years. Don't worry too much about it now. Lots might happen in the meantime. Your kids may get jobs and be able to contribute more. They may leave the house and you may wish to trade down anyway.
The bizarre thing about the requirement to pay off a loan by age 65 is that when you reach 70, some lenders will actually give you a loan on an interest rollup basis.
Brendan