outset of loan??? quick replies needed

continualdiamond

My bf and i are FTB, applied etc and we got a letter last week saying they needed info of a repayment vehicle as we went for interest only. I sent a letter back saying after the initial 5 years fixed rate we planned to switch to repayment.

Well now i have got another letter saying.

A repayment vehicle is required to be in place from the outset of your loan. (what does that mean, outset?)

It goes on to say if i cannot provide detials of endowment, pensions, PEPS or ISAS they can proceed with the application on a repyment basis.

But isn't that what i already told them??? Or are they asking something totally different?

jamesd

Outset means start. That they will not give you the mortgage as interest only unless you start paying into some way of repaying the mortgage as soon as you have it. Starting repayment five years later is not acceptable to this lender.

Other lenders may have different policies. I suggest asking a mortgage broker about your options.