Lender Making You Change Type Of Mortgage

philistan

Can a lender make you change the type of mortgage you have? i.e. From an interest only to repayment.
I have had a letter from my provider, IF, saying that if I cannot provide credible proof that I can pay my interest only mortgage in 10 years time they will put some or all of it to repayment.
I currently have a mortgage at less than 50 percent of the house value.
I would appreciate any advice.
Thanks.

holly_hobby

What are your plans/arrangements to repay your mortgage in 10 yrs ?

Holly

Joe_Bloggs

From the Nov 2011 PDF on the Terms & and conditions web page.

F.15 Your legal responsibility for the investment plan

F.15.1 If any part of the mortgage debt is an interest-only mortgage loan, you must have, or take out, and maintain a suitable investment plan to repay the capital at the end of the mortgage repayment period for the interest only mortgage loan.

....and further down ...

F.15.5 If we ask you, you must:
F.15.5.1 show us details of the investment plan and proof that it is still in existence; and

F.15.5.2 let us hold any documents relating to the ownership of the investment plan.

J_B.

_Andy_

philistan wrote: »

Can a lender make you change the type of mortgage you have? i.e. From an interest only to repayment.
I have had a letter from my provider, IF, saying that if I cannot provide credible proof that I can pay my interest only mortgage in 10 years time they will put some or all of it to repayment.
I currently have a mortgage at less than 50 percent of the house value.
I would appreciate any advice.
Thanks.

Sounds like a responsible plan.
Why does it bother you?