Rights to convert from repayment to interest only?

carleea

I want to convert my mortgage and my lender is refusing my request on the grounds of my £3K arrears.

The conversion will significantly reduce my monthly payments, enabling the arrears to be cleared quicker.

What is my legal position? Do I have any rights?

Thanks very much

Carleea

beecher2

No, you don't have the right to demand an interest only mortgage. Go onto Debt Free Wannabee for help in budgeting to get rid of the arrears. Maybe you could ask the lender if you can make ther term longer to cut down on your payments.

Joe_Bloggs

This Directgov link may be of some use or not, if you have seen it before.
J_B.

opinions4u

carleea wrote: »

What is my legal position?

The legal position is that you have a contractual monthly mortgage payment and the lender does not have to deviate from that.

Do I have any rights?

You have the right to be told "get lost" in a sympathetic manner.

Sorry if it's not what you wanted to hear.

Thrugelmir

carleea wrote: »

The conversion will significantly reduce my monthly payments, enabling the arrears to be cleared quicker.

By switching to interest only. Then you'll not be making your normal capital repayments. Thereby merely deferring the root cause of your problem. In that your finances are over stretched.

Time to face the reality of your situation.