Repayment mortgage to Interest Only- help...

skyjumper

I would like to change my Mortgage from Repayment to Interest only. The mortgage offer was accepted and now I have been sent out the Offer letter to sign. I know if I need to change anything after I have signed this form- it might affect the whole deal, but can I ask for an amendment at this point- Repayment to Interest Only.

it's the life time tracker with HSBC and there is no charges involved - NO exit fees, No ERC or anything else.

Is it possible to do this as I feel it's better to pay a lumpsum every month to reduce the capital down rather than going with the repayment option.

Please advice me - do i need to make another application or can they just amend the current one and do a revised offer

thanks in advance

_Andy_

HSBC will look at IO as long as your LTV is 80% or less.
They should be able to amend the application.
However they probably won't be happy with the repayment 'vehicle' being overpayments.

Mateus_2

Hi

Can be tricky as HSBC will ask if you have vehicle of repayment like a pension plan, endowment or ISA, I woul say you are better of doing repayments then interest only even if you want to make overpayments, you can still do on repayment basis. With repayment method you are always paying some capital off...

Cheers
Goncalo

skyjumper

thanks Andy and Mateus,

I'm taking less than 65% and yes I will be able to show that I have a repayment Vehicle to show them. I did try speaking to their customer care services over the phone and the bloke I spoke to was not very enthusiastic and kept me on hold a few times before answering any questions. He was finally unsure if the Bank will agree to this. I'm planning to call them again and ask them in the morning.

what i don't want to happen is HSBC asking for more documents and prolonging things and then Not able go ahead with the deal they offered me a few days back- they are not available any more and also have added fee on top of that