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Changing from repayment to interest-only, in a fixed term?
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Patmoore
Posts: 104 Forumite
Hi guys.
The lo-down is that I'm possibly looking at losing my job, as a change in vocation I am considering going into study for a PGCE.
This will mean a massive cut in household income (possibly regardless of vocation change). In the midst of working out that we could just about afford to pay interest only for the time I am studying.
Our mortgage is with HSBC on a 5 year fixed (about to enter 3rd year of it), what is the likelyhood of them letting us switch to interest-only? I have just downloaded the T&Cs, so will go through that but thought I'd ask here
Cheers
P
The lo-down is that I'm possibly looking at losing my job, as a change in vocation I am considering going into study for a PGCE.
This will mean a massive cut in household income (possibly regardless of vocation change). In the midst of working out that we could just about afford to pay interest only for the time I am studying.
Our mortgage is with HSBC on a 5 year fixed (about to enter 3rd year of it), what is the likelyhood of them letting us switch to interest-only? I have just downloaded the T&Cs, so will go through that but thought I'd ask here
Cheers
P
0
Comments
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Probably not - they will only allow IO up to 80% LTV and then only with a suitable repayment vehicle in place.0
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They may not accept it as a lending proposition at the outset. That doesn't mean they won't allow it as a customer management issue for a limited period in the OP's circumstances. Lenders tend to take a pragmatic approach if it means avoiding putting a borrower into arrears.
Patmoore - in this instance, I suggest you contact them and explain your circumstances. Hopefully, they will be sympathetic.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
IO on a temp basis is rarely done - if so they record the payments as missed.0
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Fair enough. You know a lot more than I do about HSBC. There is nothing on the website, other than contact us.IO on a temp basis is rarely done - if so they record the payments as missed.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for your input. Will try the old telephone and letter approach. Inclined to think they might not do it for a year but I can hope! Our current LTV, based on sale price is at 60.5%, but then I don't expect that to matter.0
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Thanks for your input. Will try the old telephone and letter approach. Inclined to think they might not do it for a year but I can hope! Our current LTV, based on sale price is at 60.5%, but then I don't expect that to matter.
You may fare better speaking to a mortgage manager within branch.0 -
What differrence would extending the term of your mortgage make?
This would reduce the payments a bit and can be reversed at a later date. We did this when my wife took a career break.Andyboy :idea:0
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