Switching repayment mortgage to interest only

Unclepetey

My wife and I are wondering if we might be able to switch our current C&G lifetime tracker mortgage to interest only. The reason would be that we are hoping to move house soon (probably next year) and given the current low interest rate on the mortgage it would really help to increase our savings if we switched to interest only. Our aim would be to try and increase our savings so that we would have an LTV of 60% when we move rather than the current 75%.

Any thoughts on this? We will obviously contact C&G to discuss it with them but I'd be interested in anyone else's experience in doing this (whether with C&G or another lender).

getmore4less

Makes no difference when you move.

You either get more capital out of the place you sell or have bigger savings you can't get both.

Either way the amount is the same give or take a bit of interest.

Let_Us_See

No point in instigating a discussion wait until you check that C & G will allow.

Unclepetey

Thanks getmore4less - agree with your analysis.

However, the thing I would add is that as we would be looking to port our tracker mortgage to the new property (which C&G have said we can do) the higher the borrowing on the very good tracker rate the lower the borrowing on any extra lending we would need. So keeping the capital amount on the tracker mortgage higher would, in a strange, way work to our advantage.

Assuming interest rates stay low of course...

Rockporkchop

I am doing exactly the same thing for the same reasons, I'm on a 1.39% tracker with the Woolwich and switched to interest only so I can save the rest and hopefully port the whole mortgage across. The Woolwich were absolutely fine with it.

(Fingers crossed about the rates, obviously!)

getmore4less

If porting and planning to borrow more which will be at a higher rate makes sense to kep as much on the low rate as possible.