can banks force you on a repayment?

Euphoria1z

Hi all

sorry if this question has been posted previously, but if your on a interest only mortgage, can your lender force you to change it to a repayment? Im on a svr with my lender, and am not looking to change till the rates move, but can my existing lender do this? not looking to remortgage/borrow more money but keep things the way they are?

Thanks

Euphoria1z

dont really have a plan as such. depends on my circumstances. once i can afford to go on a repayment plan then i probably will, though i would much rather save and they pay a lump sum on a yearly basis so i can see the amount go down!. Also considering leaving it on interest only, and hoping for HPI in the next 15 yrs, should that happen i could use my buy to let property to bring the capital down.

The fact that you have said it can vary from lender to lender, does that means its a possibility? if so, what criteria do you think they will use to make the decision to get me on a repayment plan? i mean they havent done it yet and ive been on the svr for almost a yr now.

i understand if i remortgaged now, unless i have significant equity (which i dont) i will only be offered repayment plans?

cheers.

ItMightBeUsefulOneDay

Euphoria1z wrote: »

dont really have a plan as such.

Life always comes up with reasons why you need that extra money elsewhere and so the years tick by without any way of repaying the capital owing in place. The longer you leave it, the harder it will become until D-day arrives and the banks send you the bill for the full amount.

Euphoria1z wrote: »

i understand if i remortgaged now, unless i have significant equity (which i dont) i will only be offered repayment plans?

Banks are nervous that house prices will continue to fall in the next few years and so are taking steps to reduce their exposure to negative equity. The best way to do this is for people to start paying back the principal so the banks are rather keen that you'll make inroads into the debt rather than just treading water.

getmore4less

So you are basicaly renting the place with all the costs of ownership.

You will have to check you T&C's for any conditions that could allow the kender to make the change.

Even someone knowing the lender won't help since the standard T&C's change over time.