Changing mortgage type - with a slight twist

JCR1987

Morning chaps,

What is the likelihood we'll be able to change our mortgage from interest-only to repayment?

The slight twist is we're with Advantage (the sub-prime mortgages arm of Morgan Stanley) who are no longer providing mortgage products.

Would it be considered a new mortgage by changing the payment type or will it merely be a case of them recalculating the payments?

I intend to give them a ring about this tomorrow, but thought I'd see if any experts had an opinion first of all.

Cheers,
JR

feisty1

The experts are Advantage as each lender applies their own charges to their own products.......When the mortage was originally set up, you would have rcvd documentation from Advantage & it will contain a tariff of fees.....Any charges will be added to the mortgage..

Met_Bobby

Ask Advantage and then post their reply for comments.

Ian_Griffiths_Halifax

You shouldn't have a problem in changing to Repayment but there's likely to be a charge of between £75 and £150 for doing so.

You should have received a tariff of charges with your latest mortgage statement (or on the anniversary of the mortgage if not) listing any fees such as this.

JCR1987

Just looked at the tariff of charges leaflet we got recently. £50 for conversion to/from a repayment mortgage. Their offices aren't open yet but at only £50 it's definitely worth considering now. Will keep you posted.

Ian_Griffiths_Halifax

£50 is good. That's the lowest I've heard of for a long time.

JCR1987

Just spoke to Advantage now, the fee for switching to remortgage is £75, which, whilst more than the £50 price I saw in their booklet (and which I will raise at a later date), is still pretty decent value. They say its a simple process which can be sorted out a few weeks before my fixed rate is due to end (in May). Easy Peasy Japaneesy.

silverbullit

I recently switched from repayment to interest-only with Bristol & West (Bank of Ireland). There was no problem, but the 'conversion fee' was £50.00.