How to switch from Repayment to Int Only?

DebtMagnet

I am looking for any advice please as I have tried searching the web and the forums here but have not found an answer as yet to my question.

I am currently on a fixed deal repayment mortgage and want to change to interest only for a few months to get myself back on the right track but don’t know how to play it?

I have basically been very stupid and have lived on credit for the past year foolishly telling myself that I’ll be able to turn things round, but now it’s got so bad that I have been taking payday loans to fill the gaps and have reached breaking point.

If I change my mortgage to interest only it will give me approx £250 a month more than I have now and so I feel it would help me pay off the payday loans and slowly get me back on the straight again. However having just phoned up and spoke to the provider, they say I need to apply for a change and give my reasons why!!

So my quandary is this: do I tell them just what a mess I am in so that they realise I need their help and accept me, or will me telling them everything make them nervous and decide to not risk me not paying any capital for a few months and so they refuse? I just don't know what they want to accept me as I am not changing anything on the mortgage other than not paying capital for a while?

I really can’t see any other way out of this mess as I’m already working 3 jobs and I’m only treading water. Yes it’s all my fault before anyone says it, but I have seen the light and am trying to make tracks in the right direction now so need this switch to interest only to give me a starting point.

Anybody any ideas on what is acceptable or not and if they refuse me, can I appeal on the grounds of financial difficulty?

Many thanks in advance,
DM

DebtMagnet

Well I'm kind of reassured by the fact that 50 people have viewed my post and nobody has replied..........Its not an easy question and I don't feel so stupid now for asking it

I guess I'll just write an honest account and hope they take pity

Cheers,
DM

SouthCoast

Having problems with your mortgage payments?


http://mortgagehelp.direct.gov.uk/default.aspx

DebtMagnet

Thanks for the link SouthCoast, however I am trying to stop myself getting to the situation that the link is helping with.

I have no arrears and no late payments as I pay the mortgage first without fail, and then spend the rest of the month worrying about everything else.

I would hope that my lack of problems with them would go in my favour, but can't help but think they will just think I am managing fine and say no.

Anyway thanks for replying
DM

SouthCoast

it’s got so bad that I have been taking payday loans

I am struggling to pay my mortgage from my link appears to apply.

_Andy_

Ring your lender, explain the situation and request to change to IO.
They will either allow it or not.
There may be an admin fee if they do allow it.

speedbird1973

You can only ask!

But tell the truth. Work out how many £250s you'll need and spend that £250 on the debt. Make sure you know how long you need it for, don't underestimate! Be straight with yourself and straight with the lender.

picardygirl

A friend of mine rang their mortgage company as they were really struggling financially - their mortgage company, Northern Rock, agreed to allow them to go interest free for a period of 12 months - but they had finished their current deal and were going on SVR - dont know if this was only allowed as they had finished their current deal, and NR couldnt offer them a new fixed rate.

getmore4less

If you havn't done a full SOA then you are just guessing that IO will work.

http://www.makesenseofcards.co.uk/soacalc.html

This is realy a debtfreewanabe problem to start with, goining IO may be part of the solution but it may be that a DMP is more appropriate

without a deatailed analysis of the spending and debt it will beaeasy to get this wrong and make things worse.

Do the numbers so you have all the answers for any question a lender may ask.

DebtMagnet

Thanks for all the replies.

I was thinking of putting it on the DFW board but as I wanted to know specifically about a mortgage related question I guessed this board may be better.

I have taken the advice and told them everything so will just have to see what they say.

I nearly did post an SOA but figured that as I have this option to start making a difference I'm probably not in the need for all the help on there as much as some others (yet!). If I get turned down then I'll go and ask for expert advice.

Thanks all again, I'll post back when I find out the decision in case anyone else is ever looking at the same thing.

Cheers
DM

mortgage-adviser-now

DebtMagnet wrote: »

Thanks for all the replies.

I was thinking of putting it on the DFW board but as I wanted to know specifically about a mortgage related question I guessed this board may be better.

I have taken the advice and told them everything so will just have to see what they say.

I nearly did post an SOA but figured that as I have this option to start making a difference I'm probably not in the need for all the help on there as much as some others (yet!). If I get turned down then I'll go and ask for expert advice.

Thanks all again, I'll post back when I find out the decision in case anyone else is ever looking at the same thing.

Cheers
DM

A couple of other points.

The mortgage is your priority make sure your mortgage Lender is happy.

Your other loans and credit cards are very much secondary issues.

Do not consolidate these other debts into the mortgage.

If you cannot afford to pay all your bills on your net income your unsecured lenders will have to accept lower payments on the outstanding credit.

Book an appointment with your local citizens advice bureau immediately to ask them to help you plan your way out of this situation.