Fixed Mortgage to Interest Only???

kiwichick

Hello All,

I'm not sure of the best forum to post this on but I really am in need of some advice please.

My husband and I seperated at the end of April and he has signed a 12 month lease on a flat for himself. I am living in our family home with 3 children.

I am struggling to pay the mortgage now with his maintenance and other benefits I have coming in and am trying to explore my options before being forced into a house sale (as ex so desperately want as he wants his equity but i dont know what the law is in terms of that?).

I am 3 years in to a 5 years fixed term with A&L. Doe anyone know if I am able to switch to an interest only? I know I will incur redemption fees.

Is there any other way to do things????

Al x

beecher

Is your ex agreeable to going onto interest only? He'd have to sign the papers too I think. If he is agreeable, you'll have to ask A&L - it is up to them if you can change to interest only and they may base that judgement on loan to value etc.

Maybe selling up would be your best option rather than continuing to struggle - does your ex not contribute to the mortgage?

edit: you'd stay within your fixed term if you did this so wouldn't be paying an Early Repayment Charge. It should just be a charge rather than a redemption fee.

kiwichick

Hi Beecher,

I'm getting money from my ex as a spousal and child maintenance payment, we've come to a voluntary aarrngement. With this and CTC and CHB I am ablt to meet the mortgage payment but struggle with the other bills and food.

I have applied for Income Support but am still waiting for the result so as yet receive nothing from this.

My lawyer is urging me not to sell until the divorce has been finalised, this will be a couple of months yet.

Its such a hard time because if I sell I cant get a rental agreement until I have LHA (formerly housing benefit) but I cant get LHA until I have a signed rental agreement. As renting is more exoensive than my mortgage its a nightmare. I will be effectvely making myself and my children voluntarily homeless. I dont know what this means legally.

Sorry for waffling, I'm so stressed by all this i dont know what to do.

AL x

beecher

Why don't you phone up A&L this afternoon and ask them what the procedure is for changing over to interest only, and whether you're eligible? Ask about any charges too. At least then you'll know where you stand with that, and if what they say sounds positive you can approach your ex if he does indeed need to sign something.

zax47

I think eligibility will be the overriding factor here. I asked Nationwide to move from repayment to interest only and was told NO. Their loan-to-value criteria is such that I had to have a MINIMUM of 150% of positive equity in my property (i.e if you owe £100K, property must be valued at £250k+) before they would even discuss it! I'm not that far out (o/s mortgage of £104k, property value of £220k) but they wouldn't even discuss the possibility.

It will be interesting to see what A&L say their eligibility criteria are. I wouldn't be surprised if they charged a fee for them to get an up to date property valuation.