Moving to interest only

Thrugelmir

Leon_W wrote: »

Thrugelmir

" How can you assess the risk without financial data? Company accounts and financial forecasts etc. Underwriters look at cases on the facts not on speculation. "

The underwriters can consider all the facts they like. It makes not one jot of difference as Bob has the money already.

Repossession costs are bourne by the borrower BTW.

It does matter a "jot". As BJ wishes to change the terms of his contract. So financial information is of material importance in making an underwriting decision as to wheter agree to the request.

The administrative cost of running a large Corporate business extends far beyond the direct costs of repossession, which as you correctly say are added to the debtors liability.

Thrugelmir

Bob_Jones wrote: »

I am a director of a limited company and I currently get paid a salary. To preserve cash in the company I will reduce this salary by £1500 per month for approx 6 months. I am currently paying £1251 on a repayment mortgage with £200 being a voluntary overpayment. To reflect the fact that I will have a lower income I wish to reduce my mortgage payments to £610 (interest only).

Off topic but relevant. Do you withdraw some "income" from the Company in the form of dividends?

Bob_Jones_2

Thrugelmir wrote: »

Off topic but relevant. Do you withdraw some "income" from the Company in the form of dividends?

Yes. I am using the term salary as an all encompassing description of renumeration.

Anyway whos asking? :whistle:

Leon_W

Thrugelmir

I agree that Bob wishes to change the terms of his contract. Where I disagree with you is on the importance of Bobs financial information in making that decision (to change to I/O temporarily.).

The money has already been leant. No amount of "financial information" or underwriting is going to change that fact. So, to what possible detriment is the lender going to come to by extending an offer of say 1 year interest only ? You appear to believe there are some considerations to be made by the lender but I fail to see where (apart from age, taking the term into retirement etc).

jamesd

Bob Jones, you've probably got a pension and the lump sum from that can serve as a repayment vehicle.

Your plan isn't worth doing in the way you're trying to do it. The amounts are too low to be worthwhile.

Unless something in your credit record blocks it get a 0% for purchases credit card and put £600-700 of monthly spending on it. Perhaps Council tax or income tax. Or get a Virgin credit card and do a balance transfer of £3,600 from your current account to the credit card for a 3-4% fee. That'll get you the £3,600 you need to fund the reduced payments. Or ask your bank for an overdraft facility, or an increased one.

VIGILANT22

Leon_W wrote: »

Thrugelmir

I agree that Bob wishes to change the terms of his contract. Where I disagree with you is on the importance of Bobs financial information in making that decision (to change to I/O temporarily.).

The money has already been leant. No amount of "financial information" or underwriting is going to change that fact. So, to what possible detriment is the lender going to come to by extending an offer of say 1 year interest only ? You appear to believe there are some considerations to be made by the lender but I fail to see where (apart from age, taking the term into retirement etc).

You fail to recognise a contract of repayment which was the agreement........."you fail to see"........but YOU are not the lender........

Leon_W

I am not the lender. I know that. I am trying to understand their reasoning.

If you read above you will see that I am also aware of contract law. What part of "I agree that Bob wishes to change the terms of his contract" do you not understand ?

Now, Thrugelmir is of the opinion that a huge amount of underwriting and "financial information" needs to be gathered in order for Bob to go interest only for a bit. I am of the opinion that there isn't.

So can you genuinely add anything here ?

VIGILANT22

Leon_W wrote: »

I am not the lender. I know that. I am trying to understand their reasoning.

If you read above you will see that I am also aware of contract law. What part of "I agree that Bob wishes to change the terms of his contract" do you not understand ?

Now, Thrugelmir is of the opinion that a huge amount of underwriting and "financial information" needs to be gathered in order for Bob to go interest only for a bit. I am of the opinion that there isn't.

So can you genuinely add anything here ?

Yes I can add something "genuinely here"

Quote: "to help get a new project off the ground".

Why can the lender not decide if this "to help get a new project off the ground" is a business they wish to take/risk with their money?

Bob_Jones_2

VIGILANT22 wrote: »

You fail to recognise a contract of repayment which was the agreement........."you fail to see"........but YOU are not the lender........

wind it in mate. All the bold posting is a touch pompous.

VIGILANT22

as is your idea the lender should agree to what you WANT