Possibility of Interest Only Mortgage When Repayments huge

Poppy2009

Hope someone can point me in the right direction as I'm frantic with worry. As part of my divorce I have been advised by my solicitor to cash in 2 endowments to help pay my ex's debts so that he can't force sale of our home (2 kids to look after who are doing exams atm).

The problem is that when they are cashed in my mortgage will convert to repayment and my monthly payment will increase by 500% - no that's not a misprint:(

Neither my solicitor or the mediator (grrr hated mediation) warned me of this scenario and I was completely unaware until the building society contacted me to advise of the new payment from 1st June. The endowments paid much of the interest on the mortgage and I get some interest support from the DWP, but as a large chunk of this will be repayment I'm really going to be stuck.

I wanted to ask the building society to continue the mortgage on an interest only basis until the house is sold in 3 years time - we've been there many years and even at the moment we have considerable equity, although not enough to buy a smaller house, so the building society will be sure to get their money back.

Has any one been in this position or can you give me any pointers as to whether this would be deemed an unreasonable request given my circumstances.

Thanks in advance for any help.

Thrugelmir

Speak to your lender first. For interest only loans there is an increasing requirement for a repayment vehicle to be put in place. Have you considered increasing the mortgage term to reduce the monthly outgoing if the mortgage is moved onto a repayment basis?

You also have the option of downsizing with a smaller mortgage.