Swapping to interest only...
Discussion
My income has been cut by almost 20% so made a call to mortgage lender to change over to interest only for 12-18months, person on phone informs me they don't do this! my reply was "you are joking right?" the lady puts me on hold then comes back to tell me I have to apply in writing, I type up a letter and post it off and today I received a reply..
"Unfortunately we do not offer temporary switch from repayment to interest only, whilst any offer of payment will be accepted, in order for your account to be maintained and avoid falling into arrears we require the full monthly instalment"
Wow how silly of me to not realise my account would fall into arrears if I didn't pay the full amount every month!
So much for helping customers during the current financial climate!
"Unfortunately we do not offer temporary switch from repayment to interest only, whilst any offer of payment will be accepted, in order for your account to be maintained and avoid falling into arrears we require the full monthly instalment"
Wow how silly of me to not realise my account would fall into arrears if I didn't pay the full amount every month!
So much for helping customers during the current financial climate!
)saleen836 said:
My income has been cut by almost 20% so made a call to mortgage lender to change over to interest only for 12-18months, person on phone informs me they don't do this! my reply was "you are joking right?" the lady puts me on hold then comes back to tell me I have to apply in writing, I type up a letter and post it off and today I received a reply..
"Unfortunately we do not offer temporary switch from repayment to interest only, whilst any offer of payment will be accepted, in order for your account to be maintained and avoid falling into arrears we require the full monthly instalment"
Wow how silly of me to not realise my account would fall into arrears if I didn't pay the full amount every month!
So much for helping customers during the current financial climate!
care to name the lender, no shame, just name...."Unfortunately we do not offer temporary switch from repayment to interest only, whilst any offer of payment will be accepted, in order for your account to be maintained and avoid falling into arrears we require the full monthly instalment"
Wow how silly of me to not realise my account would fall into arrears if I didn't pay the full amount every month!
So much for helping customers during the current financial climate!
Some lenders will allow people to switch to interest only, but most dont these days, your contract is what it is.
The Mortgage Conduct Of Business rules say a lender should consider a change to interest only when in financial difficulties, unfortunately these dont apply to people who want to go interest only, to prevent going into financial difficulties.
Its kind of a mad world; you have to fall behind before they would consider it, rather than considering it so you dont fall behind....
The Mortgage Conduct Of Business rules say a lender should consider a change to interest only when in financial difficulties, unfortunately these dont apply to people who want to go interest only, to prevent going into financial difficulties.
Its kind of a mad world; you have to fall behind before they would consider it, rather than considering it so you dont fall behind....
Road Pest said:
LeoSayer said:
Can you switch mortgages to a different provider that offers interest-only?
Doesn't sound likely, if income has dropped 20% then the OP may not fit income criteria elsewhere.M400 NBL said:
I would ask to speak to someone more senior that the financial advisor on the end of the phone.
It seems odd that they would flatly refuse to help you, even though they'll make more money from you in the long run.
Depends on the rate the OP is paying...some of the lenders have been caught out and are paying more for the money than they are selling it for...hence why they are keen to get repayments of the principle.It seems odd that they would flatly refuse to help you, even though they'll make more money from you in the long run.
M400 NBL said:
I would ask to speak to someone more senior that the financial advisor on the end of the phone.
It seems odd that they would flatly refuse to help you, even though they'll make more money from you in the long run.
It's policy at a number of lenders now. Getting arsey with the call centres won't often help. It seems odd that they would flatly refuse to help you, even though they'll make more money from you in the long run.
Some have gone to no switches at all, some are no I/o swtiches on high LTV stuff.
Alot of it is to do with declairng repayment vehicles. I.e the OP won't have one in place.
For whats its worth, you should really only consider switching to interest only if you have a bone fide vehicle for repayment.
If you dont all you are doing is simply pushing todays problem into tomorrow. Although it may look good now, eventually you will have to overpay to catch up and this is what worries the lenders.....
S
If you dont all you are doing is simply pushing todays problem into tomorrow. Although it may look good now, eventually you will have to overpay to catch up and this is what worries the lenders.....
S
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