Refused change to Interest Only

AXZ222

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?

feisty1

who is yr lender?

AXZ222

Mortgage is from egg. Had it for 8 years

feisty1

This sounds strange? I would press them on this

AXZ222

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 tommorrow

Gorgeous_George

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.

GG