want to go onto interest only...

luckyfool

mstar wrote: »

thanks ppl,

i guess it comes down to me wanting to have enough money in my pot to make sure
i can support myself if things go wrong (i lose my job too etc) i want to build
up my savings, possible new baby on the way etc.

not sure why they need to ask so much questions, never had this problem before.

A repayment mortgage means you are committed contractually to repaying the full mortgage over the term, i.e. as time goes by all else being equal the lenders position gets better and less risky. Interest Only means the balance stays the same, and if house prices fall the lender is more likely to end up in a negative equity situation.

They are perfectly entitled to ask questions about why you want to switch, and are under no obligation whatsoever to allow you to change to interest only. In fact all the incentives in the current market with future house prices uncertain, are for the lender to force you to stay on Capital and Interest. Mortgage lenders are making it more and more difficult to take out new Interest Only mortgages (on main residences at least, if not buy to lets), and FSA keep making noises about banning or severely curtailing use of Interest Only.

_Andy_

Why has a thread from March been dragged up?

Blackpool_Saver

_Andy_ wrote: »

Why has a thread from March been dragged up?

because it relates to this persons post which they posted today

_Andy_

Blackpool_Saver wrote: »

because it relates to this persons post which they posted today

Ah I see!