mortgage help please

tattoed_bum

hi can anyone help with this please

is it possible to drop from a repayment mortgage to interest only mortgage for a couple of months ,
as far as i know we arent tied in to the rate we are on and we dont have to pay any fees to change .

koexelek

Most lenders will be OK with that.

Some might make a small admin charge, others won't

Ian_Griffiths_Halifax

Check with your lender because some will provide the facility without having to ask them to do you a favour. It might have been part of your mortgage offer when you set the mortgage up.

As koexelek said, some might make a charge, but that charge isn't so small, it's usually around £75. There should have been a Tariff of Charges with your last Mortgage Statement.

Consider why it is that you have to go onto Interest Only. Is it a long term issue or something that WILL only need a couple of months to sort out.

It might be better to change to Interest Only and Overpay when funds are available or set up a Standing Order along side the mortgage to make regular overpayments, which can be stopped when/if you need to do the same thing again in the future rather than paying a fee each time.

opinions4u

Some mortgages may offer a payment holiday.

A month of this with no fee may be better than paying £75 to go interest only for a bit.

tattoed_bum

hi it's only for a month or two my dh is changing job and going from weekly pay to monthly so we will be without a wage for a couple of weeks ,
thanks for the info it might just be worth the struggling for a month or so

Ian_Griffiths_Halifax

Give them a call and explain. Tell them that you don't want any arrangement that will cause you to have an Arrears record, you would rather struggle for the month than do that.

They may be able to delay collection of the payment until his new wage comes through or give you the Payment Holiday, which you could catch up on later.

opinions4u

With Ian on this. Call for advice and then make a decision.

If you pay on the 1st of each month, switching to the 28th may solve your problem - assuming there's no charge for this.

It will cost you a little in interest at the back end of the mortgage, as would the other options looked at.