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Refused change to Interest Only
AXZ222
Posts: 7 Forumite
I rang my mortgage company a few weeks ago to try and change my mortgage to interest only. They gave me a quote for the new payments and said put the request in writing. They have now written back and refused to change the payments.
LTV on property is about 40% and this amount is fully offset at present. The offset amount is soon to be put down as a deposit on another property.
Can anyone think of a reason why the request was refused?
LTV on property is about 40% and this amount is fully offset at present. The offset amount is soon to be put down as a deposit on another property.
Can anyone think of a reason why the request was refused?
0
Comments
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who is yr lender?0
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Mortgage is from egg. Had it for 8 years0
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This sounds strange? I would press them on this0
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Could it be because the mortgage balance is currently offset? I think they may be assuming that I don't want to pay any monthly payment, which is not the case. Once I move the money out of the offset account I want to pay the interest on the mortgage balance.
I'll ring them tommorrow0 -
Is it on a low interest rate? If so, they may prefer to have the money back than to continue lending it.
Other than that, I think that there are other lenders who will no longer allow switching to IO. ISTR it being discussed on MSE recently.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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