interest only mortgages

lazlo

Am trying to find ways to hold onto my home and asked about an interest only mortgage but they say I need a policy or something in place to cover the cost of my home. I have 71% Equity in a £140,000 home and would be selling this house to repay the balance owed and downsizing when the kids leave home. This RBS say is not good enough and I need an Endowment or Isa or some kind of policy otherwise they will not lend to me.

Which is my best option?

Isa? Endowment?

Any idea?

CLAPTON

If you can afford to save in an endowment or ISA sufficient to pay off the mortgage then won't this be similar or even greater than the cost of a repayment mortgage

koexelek

That is very harsh, when you have 71% of equity in the property.

Hardly Treating Customers Fairly, is it ? :rolleyes:

mad__money_2

I was told the same thing, that I would need an ISA or similar in place before being offered an IO mortgage, realistically going repayment would work out better but still high! :-(

lazlo

That was what I thought but RBS would rather repossess a house than offer assistance. They do not offer the choice of converting to an interest only mortgage they only offer 3 month mortgage payment break or 6 months at 1/2 cost and a six year bad credit rating.

Is this a choice?

Lone parents are obviously not covered in the RBS's "fair treatment" policy.