Moving Mortgage to Interest Only for short Period (Six Months)

The_Incredible_Schmoo

Hello all,

Just looking for other people's POV on this one, I've contacted my mortgage company (Mortgaes PLC - Yes bit of a dodgy financial past I'm afriad, but all sorted now) and enquired about moving my mortgage to an interest only mortgage for a period of 6 months (allowing me to invest in a new kitchen with the money I'll not be paying off the capital of my mortgage).

I understand that this option is not a god given right and can be refused but at the moment it seems the most sensible way of me getting what I want without going into debt.

Anyway on my question, thus far I have sent 3 emails to Mortgage PLC asking them the question i.e. the process I need to follow to apply for this change, these were sent on the 5th December, 13th December & then yesterday 4th of January and as yet I've not had a single response - not even an acknowledgement!

Now this has really cheesed me off, but following my New Years Resolution I'm biting my lip :A - So what do you think I should do?

I've had my Mortgage for 2.5 years and not missed a payment, figures are...

Mortgage owed £82,000

House worth £125,000

Thanks for any input.

Ta

Schmoo

beecher2

I'd phone them up rather than email.

I personally wouldn't be going interest only just to pay for a kitchen, but then I see it as getting further into debt if you go interest only. I'd advise going onto the Debt Free Wannabee forums for help in saving money for your new kitchen instead.

steve237

Obviously everyone's situation is different.

But, your LTV ratio isn't too bad. As long as you're happy with the current deal you're on (fixed/tracker/svr) and not looking to switch to another product soon, and you really want this new kitchen, then 6 months on interest only isn't that bad of a way to do it in my opinion.

Beware though, ensure you stick to the plan - about 18 months ago I switched to interest only while my wife was off work after major surgery - we planned to revert back to repayment after 6 months when she went back to work, but it ended up being 12 months by the time we changed back. It's easy to get used to the low payments.

In our situation, due to the timing of when we did this and the changes in interest rates and deal we were on, we enjoyed monthly payments of £34 a month for a while - they are now £880!

I'd like to say we saved the cash, but we didn't (although we did have a holiday in Cuba, a long weekend at the Christmas German markets, a new bed and new dining room suite out of it!)

I say go for it, life's too short.