Interest only questions

williamD1964

Ok, serious advice needed. Been reading a few posts on here this morning, and want to clarify something.
Last year, I changed to an interest only mortgage from a repayment. This has helped me reduce the debt and free up funds. The plan is to work my nuts off to pay the credit cards off (or as much as possible) before the fixed term ends.
I have £186000 mortgage, fixed until Feb 2013, when I will have 15 years to run on it. I will be 48. The plan was to then remortgage to the full value (186000) over 17 years, at repayment.
My concerns are these:
Can the bank arbitrarily decide to change me back to repayment, if so what reasons (if any can they give)?
Will the fact that I have been interest only count against my credit score?
will the fact that I intend to move the debt from one interest only credit card to another, have an adverse effect on my credit rating, (even if I am clearing the debt)?

HarveyGal

If you keep paying your mortgage repayments, the bank probably will not contact you until the end of your fixed term approaches - and then it will be to alert you to the end of the deal and inform you of offers available.
I don't think the interest only bit affects your credit score but the owed balance on any other loans or credit cards will affect the deal you might get in February 2013 (when you may seek a new mortgage).
Some people take out new cards and move balances around happily - it does affect your credit score and if you do it too much, you can get declined - the folk on the Stoozing board do that to make money and the rest of us do it to minimise interest repayments. I think the stoozers advise that you don't do too many applications and to reduce to zero the applications in the six months before you seek a new mortgage. Maybe when you are nearer your mortgage deal end you could check out the advice on that board?
Perhaps anyone with more knowledge could correct my statements.
Good Luck WilliamD1964. Small steps every day but you will get there.

dimbo61

Did your lender put a time limit on how long you could go interest only ?
If you have lots of outstanding Credit Card debt when you come to remortgage( with another lender) you can be turned down if the debts seem to much to the lender