Fixed rate repayment mortgage

scoodies

Hello, can sombody please offer me some advice?

We are currently locked in a fixed rate mortgage until Jan 2010. We have been paying religiously and never missed a payment....Thank God :rolleyes:

Anyway, I was wondering if we would be able to pay interest only for a while, just until I sort some other debts out?

Can you tell me if this is possible??

Thank you.

scoodies

Sorry, forgot to add.....we only started paying last Feb (08). It was fixed for 2 years.....

dimbo61

Right we have little info to go on!
Whats the LTV now ? as you bought in feb2008 !
How much deposit did you put down and how much have you paid off the mortgage?
Could you be in negative equity?
What does your mortgage revert to at the end of the 2 year fix? SVR ? Tracker deal etc
Read the paperwork that came with the mortgage offer or give your lenders mortgage centre a call and ask them.
What is your current rate fixed at ?
Hopefully you will be paying less after Jan 2010 GOOD LUCK

scoodies

OK here goes.....:o

Loan amount £165000 repayment mortgage over 21 years
Completion date 01/02/08

Fixed rate of 6.44% until December 2010 - Loan reverts to Standard Variable Rate currently 7.50% after 31st Dec 2010 for the remaining term of the loan.....Sorry must have been for 3 years?? Anyway....

Number of monthly payments 35 at 6.44% Fixed monthly payments £1200.69
Followed by 217 monthly payments at 7.50% Variable £1290.84...Not much difference, eh?!!!

Is that all you need?

Thanks a lot xx

scoodies

Sorry, I think the house is probably worth about £190000 now so possibly in negative equity :rolleyes:

Thanks x

Mrs_Bumble

I am confused if the house is worth £190K and you owe £165K why is it in negative equity? Is there another secured loan etc?

Check the house value on a site like https://www.zoopla.co.uk.

Who is your lender?

Check what there current SVR is as the one quoted above would have been what it was at the time the document was produced.

What other debts are you trying to sort out?

dimbo61

You are reading OLD paperwork I HOPE !
who is your lender and what is there current SVR!
As you have still got over 16 months left on your deal and paying a rate of
6.44% if you can afford too then overpaying (check with lender if allowed)
is better for you than saving into ISA,s or regular savers.
Dont worry and just keep up the mortgage payment each month.
As you have about 20% equity in the property you can just give your lender a call and ask about going interest only for a short period of time.

struggling-breadwinner

hi ya ! we are trying to do the same thing - linnk to my posts re affordability and changing to interest only mortghage on this thread for more.
When we asked the Abbey/sandander they said that we could change everything 75% of property value and BELOW to interest only as long as we had an appropriate repayment vehicle in place.....(and see HelpWhereICans comments on their approach ont he threads mentioned above) and any borrowing above 75% had to stay on repayment but it was split between the two
A word of warning, they don't use the same value calcualtor as say an EA would. Our house is on the market and the EA value was £40k higher than the Abbey so when i thought we owed well below £75 in fact We have a small £2k sum which has to stay on replayment - if we ever persuade them to let us chage.

I understood from speaking with the Abbey that a temporary change is no problem but others on here seem tothink it affects your credit rating so I will be checking this before psuhing the button to change.

Also worth mentioning that we changed our life and crit illness cover cause we had a decreasing term cover and of course the capital won't be decreasing on an interest only so we needed level term cover. If you are sure you will go back to repayment you might be less owrried about a very short term shortfall in life cover.

Anyway when we cahnged that policy the cost rose slightly.

HTH?