We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can an interest only mortgage be changed to a different type at a later date?
ntexeira
Posts: 1 Newbie
Cannot find the answer to this question??
If you had an interest only mortgage because you wanted to keep repayments down could you then change it after say 18 months to a normal mortgage so you are paying capital and interest and obviously the payments would be higher?
Is it possible to change after a period of time?
If you had an interest only mortgage because you wanted to keep repayments down could you then change it after say 18 months to a normal mortgage so you are paying capital and interest and obviously the payments would be higher?
Is it possible to change after a period of time?
0
Comments
-
It will depend on the lender in question - but I think generally it will be yes, although I am sure most will charge some sort of admin fee.
Also check the small print of the particular rate you are on for the terms & conditions.......0 -
ntexeira wrote:Cannot find the answer to this question??
If you had an interest only mortgage because you wanted to keep repayments down could you then change it after say 18 months to a normal mortgage so you are paying capital and interest and obviously the payments would be higher?
Is it possible to change after a period of time?
Absolutely, probably with an admin charge.
Some clients of mine choose this pattern, but choose the best two year discount product and then remortgage at the end then go repayment. Sensible option for the right situation.
SSI am a fee charging WoM Mortgage broker.I now no longer give information and opinion within the Mortgage boards, because a number of posters who, having approached me professionally, agreed my fee-which has been been made very clear at the outset, taken my advice (normally cancelling a [home visit] meeting at short notice) have then approached one of the fee-free brokers on here to arrange the very same deal I have advised.Whilst I totally concur with the ethos of "money saving"- abusing the goodwill of a professional who provides a quality service is taking it too far! :mad:0 -
we've just applied for an IO mortgage - it allows upto 10% to be paid off the capital each year without penalty.0
-
Shockingmoment - what mortgage is that? Sounds interesting - what company and what product? Thanks!0
-
monkey_writer wrote:Shockingmoment - what mortgage is that? Sounds interesting - what company and what product? Thanks!
There are plenty of schemes that offer this facility - you just need to find the one that is right for you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
yes for sure you can , but as many member said you have to paid fees depends which mortgages provider.
More importantly you should consider your situation for the mortgages. Not because interest only you paid less then you want to go for it !
you have to see what is your income and the grow potential of your property .0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards