Bank offered to switch me to interest only mortgage - but worried.

Sarahlou_2

Hi guys

My OH has been signed off work sick for a couple of months and we will struggle to make our mortgage payments.
My mortgage is with HSBC. I have just rang them and they said if I go to a branch they will switch me to interest only, therefore reducing the payments.

However, what are the pros and cons? I'm worried because I have a bad credit history (especially with HSBC :rolleyes:) and there is a small charging order fixed on the house , would they run credit checks to switch my mortgage?

Thanks

Sarah

anh1904

If they have offered this, then it MAY be pre-approved.
Go and talk to them though, holding out when there are few options might be a poor financial option.

The pro's are you will pay less each month, the cons are you are only paying the interest, so the amount you actually owe, will not decrease for as long as you remain on an interest only plan.