Wanting to pay interest only mortgage

nervousmother

Hi looking for some advice for my brother who is not on the internet,

He took out interest only mortgage 5 years ago, although he knows his credit record is shot and he would not currently be able to remortgage due to negative equity, he is wanting to pay back the loan now is it possible for him to do this? The mortgage he has is with a company called 'verso' although we cant find any info about them.

Would they refuse if he tried to put up his direct debit payment? he is on a tracker mortgage and it is currently only £200 a month, he is used to paying £700 but can afford to pay £1000 so that would be £800 off the actual loan.

or is there another way around it for him? any adivce appreciated

Radiantsoul

I would have thought they would be delighted.

nervousmother

so how would he go about it? has anyone else done this?

obviously a direct debit is something the mortgage company set up so he would have to approach them?

CLAPTON

What interest rate is he paying... it might be better to simply save the money until he can afford to pay the whole loan back?

What do the T&Cs of his loan say about overpaying?
If they do allow overpaying, it would be sensible to aproach the company and ask about alternatives ways of paying... e.g. he might wish to keep the DD the same and simply pay extra by bacs transfer when he wants to

Robert_Sterling_3

I googled up Verso Mortgages and got 149,000 links so that will give you something to get your teeth into.

nervousmother

His mortgage rate is 1.4% so fairly low. He cant find anything to do with terms and conditions lol.

Rikki

Give them a ring and ask them the best way to make payments to reduce the capital. He may be able to make overpayments monthly or he may have to send a cheque.

Dithering_Dad

Same advice as the others, search for any documentation to check his terms & conditions for overpayments (and to know who his provider is), look at the details on the Direct Debit to see if it gives away any information such as a mortgage reference number and google the company itself and try to find their contact details.

Trying_to_be_good

Verso seem to be maintained by Western Mortgage Services, part of Britannia Building Society, but hopefully he'll have a statement or letter with contact details he can use to find out some of the information. Good on him for trying to overpay.