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woolwich interest only mortgage

Old_Git
Old_Git Posts: 4,751 Forumite
10 Posts Cashback Cashier Mortgage-free Glee! First Anniversary
in Mortgages & endowments
My mate has a woolwich mortgage .He wants to go interest only as he is not working but has some saving . Woolwich said the interest only option is now closed .does this sound correct .
"Do not regret growing older, it's a privilege denied to many"

Comments

  • feisty1
    feisty1 Posts: 1,487 Forumite
    why we would no better than the woolwich?????????????
  • Old_Git
    Old_Git Posts: 4,751 Forumite
    10 Posts Cashback Cashier Mortgage-free Glee! First Anniversary
    feisty1 wrote: »
    why we would no better than the woolwich?????????????
    well someone might know if the information is correct if they have stopped interest only .
    "Do not regret growing older, it's a privilege denied to many"
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    First Anniversary Combo Breaker First Post
    If your mortgage agreement is to repay on a repayment basis, then I would have thought it was within any lender's power to refuse to allow you to change this to an interest only basis.

    Having said that, though, I would have thought that it was unreasonable for them to refuse to do so - particularly for a short period of unemployment or similar. It would be worth checking what the Banking Code says about this.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Old_Git wrote: »
    My mate has a woolwich mortgage .He wants to go interest only as he is not working but has some saving . Woolwich said the interest only option is now closed .does this sound correct .

    It depends on the LTV and other factors. If they've declined him, they've declined him.
  • koexelek
    koexelek Posts: 7,847 Forumite
    Old_Git wrote: »
    My mate has a woolwich mortgage .He wants to go interest only as he is not working but has some saving . Woolwich said the interest only option is now closed .does this sound correct .

    This is likely to be correct. A few lenders have took this stance on interest only recently
    I am a Mortgage adviser
    You 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.
  • Old_Git
    Old_Git Posts: 4,751 Forumite
    10 Posts Cashback Cashier Mortgage-free Glee! First Anniversary
    _Andy_ wrote: »
    It depends on the LTV and other factors. If they've declined him, they've declined him.
    the LTV was good .mortgage was £35,000 house worth £150,000
    "Do not regret growing older, it's a privilege denied to many"
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    I've helped Parliament First Anniversary First Post Name Dropper
    I thought I would Check the T&Cs of my Barclays/Woolwich mortgage to see if there was anything relevent.

    We have daily interest, tracker, with reserve & offset, (flexable offset)

    Nothing in the offer letter( except that we chose repayment)
    Nothing in the general T&C's.
    In the Flexable T&C's.
    ONe section does have reference that if you are interest only you can be requested to show that you are in a position to repay and if not they can change you to a repayment and adjust the DD.

    Now this term could be an issue if enforced for those near the end of term and planning to use a downsize to pay off the loan.

    No where can I find an automatic right to be able to change to I/O
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