Part repayment Part Interest

eduard879

Hey,

New to the forum but LOVING it. I was told by my bank that part interest part repayment mortgages are almost all gone now. Anyone know of any banks offering this on an 85% loan??

Or am I barking up an imaginary tree lol.

Wh05apk

I think Halifax/Nationwide may do, but you will need to have a repayment vehicle, why are you considering part interest only?

kingstreet

Banks often represent their position as that of the whole market when that is completely false. If you worked for a bank, would you tell a prospective borrower they can actually get what they want by going elsewhere?

No. You'd claim you can't get that anymore.

Interest-only mortgages are still available upto 75% of the value of the property where there is no repayment vehicle (RV) in place. Where there is a RV, you can still get an interest-only mortgage for as high a percentage as the lender is willing to lend.

Part and part mortgages follow the plan dependent on whether you have a repayment vehicle for the interest-only element.

Whole of market or independent broker for you, methinks.

tonya

I 've got a few questions that hopefully someone can help me with.

I've just had a letter from Bank of Scotland stating that my mortgage finishes on April 5th and they want me to send them a letter proposing how I want to repay the loan. I have an interest only mortgage but I currently overpay as much as I can every month. The mortgage is a bank of scotland personal choice mortgage, has a tracker and is .75% above base rate. Outstanding balance is around 67000 pounds. The house is worth around £250,000 currently I had a couple of endowments which underperformed and matured last year but wont cover the mortgage. I am still employed but my income is now the basic wage.

I want to extend my mortgage until I am 65 ( another 9 years ) , preferably on a similar basis to the one I have today ie interest only with additional payments as and when I can afford it. I can take a lump sum from my pension when I am 60 that will cover the outstanding mortgage. Does this make sense? Are there products on the market that cover this ?

kingstreet

What happened to the proceeds of the endowments? Do you still have this capital?

Get in touch with your lender, see what they are prepared to offer. Contact a whole of market broker who will go over the other options with you.

Don't dawdle. In the event of you having to remortgage to a new lender you don't have much time before BoS wants repayment.

getmore4less

I would start with trying to get them to just extend the term on the deal you have.

at base +0.75% you would be better of saving the money till needed.

tonya

thanks for the answers guys.

re. 5 - yea I still have money from the endowments - covers nearly half of the mortgage.

I've sent the lender a proposal and will contact a broker as well to see what other options I have. I have a further option of taking a lump sum out of my pension but would prefer to just extend the term of the mortgage if the agree to .75% above base but methinks thye will try and get cash out of me and increase mortgage rate?