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Requesting interest only payments...
wooden_spoon_2
Posts: 1 Newbie
Due to my current financial obligations, I am wondering if it would be possible to request my bank to allow me to change my current mortgage payments from repayment to interest-only. Has anyone had any experience with a similar process and is there any sources I can get any further information such as sample letters, etc? Any assistance would be massively appreciated as I have little experience with such matters.
Thank you.
Thank you.
0
Comments
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Best is to give them a call as any decision is taken and based on personal circumstances .
Good luck!0 -
wooden_spoon wrote: »Due to my current financial obligations, I am wondering if it would be possible to request my bank to allow me to change my current mortgage payments from repayment to interest-only. Has anyone had any experience with a similar process and is there any sources I can get any further information such as sample letters, etc? Any assistance would be massively appreciated as I have little experience with such matters.
Thank you.
Just ring them and ask. Each lender has its own criteria0 -
IF you tell your lender you are experienceing financial difficulties they are duty bound to respond "fairly and sympathetically".
If they see that it's likely to be temporary and you will be "back on your feet" in the foreseeable future then most lenders will co-operate.I am a Mortgage Adviser -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.0 -
We did this with Santander when we realised we were paying less interest on our mortgage than we were getting on our savings.
They charged us a one-off fee to do it (£50, I think, or may have been £125) and that was that. All done over the phone.
On a related note, however, you do need to think about how you are going to repay the mortgage. An interest-only mortgage is as much "dead money" as renting is.
If you are confident that this is a short-term measure then it may well be a good plan. If not, the answer may be that you are spending too much elsewhere.0 -
Do you have other debts such as credit cards or unsecured loans?0
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