If we change to an interest only mortgage....

Bettyboop

what would the charges be?

Hi all,

Our mortgage is with the Nationwide and we remortgaged for a better deal before Christmas 2007 and are paying a hefty 5.45% interest.... this is costing us £765 a month which in this current climate is a lot with just my husband working.

Hope you can help with my question or offer some advice otherwise I will give the Nationwide a call tomorrow.

Thank you.

chambta

I wouldn't call 5.45% a hefty rate and I dare say neither did you when you took it!

I believe Nationwide would charge an admin fee of some sort. With RBS group mortgages this is £75.

barnaby-bear

Bettyboop wrote: »

what would the charges be?

Hi all,

Our mortgage is with the Nationwide and we remortgaged for a better deal before Christmas 2007 and are paying a hefty 5.45% interest.... this is costing us £765 a month which in this current climate is a lot with just my husband working.

Hope you can help with my question or offer some advice otherwise I will give the Nationwide a call tomorrow.

Thank you.

We need to know how much the mortgage is for and how long it is for and how long into it you are. At the start of a mortgage less than 10% can be repayment with the majority interest so the saving can be really small.

exil

5.45%? At one time I was paying 15% on my mortgage.

Mind you houses were cheaper then.

To answer the question - they may consider an interest only mortgage for a while but lenders normally want some sort of plan to pay the mortgage off, whether with an insurance policy, pension plan, or on death.

barnaby-bear

Bettyboop wrote: »

what would the charges be?

Hi all,

Our mortgage is with the Nationwide and we remortgaged for a better deal before Christmas 2007 and are paying a hefty 5.45% interest.... this is costing us £765 a month which in this current climate is a lot with just my husband working.

Hope you can help with my question or offer some advice otherwise I will give the Nationwide a call tomorrow.

Thank you.

Also with houseprices falling if you stop paying off the capital the % of the house you own will be decreasing - the current wisdom is to overpay on the repayment if you can. At some point you have to pay back the money you've borrowed or pay for the house and the longer you take to do it the more expensive it is.

Bangerchick

Nationwide offer a mortgage holiday which might be worth looking in to - wouldn't stop you making payments of your own choosing to stop the debt rising too much in the period. Also it is subject to meeting Nationwide's criteria and not a given that you'll get it.

Swipe

Why not get a part-time job instead? An IO mortgage in a falling market seems like a crazy plan to me

tracy1_2

Bettyboop wrote: »

which in this current climate is a lot with just my husband working.

.

wise words from those before me.
Have your circumstances changed ? Lower income? Do you really need to change your deal

Bettyboop

Has anyone got any experience dealing with a case of misselling? I'm slightly confused because on the mortgage statement it shows a figure for redemption. What's the best way to resolve it as it should not be on the statement. as we really do not know anything about it.

What's the best way to resolve it? Thanks

pixiepie99

Nationwide will only let you go onto IO if you have a repayment vehicle. I'm assuming you don't have enough left over each month to set up a repayment vehicle in which case they won't let you switch. Sorry.

I think you'll need to explore other options like those already suggested.

Puddlesplasher

Bettyboop wrote: »

Has anyone got any experience dealing with a case of misselling? I'm slightly confused because on the mortgage statement it shows a figure for redemption. What's the best way to resolve it as it should not be on the statement. as we really do not know anything about it.

What's the best way to resolve it? Thanks

Your mortgage statement will always show you a redemption figure.

What do you think has been mis-sold to you?