Amber Home Loans

simon2010

Hi there

I am on interest only with Amber and have been for the last two years, they are now insisting that I go back on to repayment mortgage but I don't have the extra £500 per month that this will cost me. I have not missed a payment on interest only in 24 months.

Can they force me to do this? Surely I will lose my home / incur extra charges etc if I cannot persuade them to leave me on interest only.

Anyone else had similar problem?

Thanks in advance.

bbfc

Is it not that your interest-only period has finished, and you are moving to capital repayments? Isn't this normal? My housemate (who owns the house) has just finished his interest-only period and has now moved to capital repayments and his monthly payments have gone up by £300.

simon2010

Yes our interest only period is coming to an end, but I cannot afford the repayments on the capital repayments.

Can they force us to do this even though my income and ex shows I cannot afford it.

DevCoder

Yes they can force this if it's part of your agreement. If you post the relevant part of your agreement then we can advise.

Interest only mortgage term deals are not good, you still need to be able to repay the capital at the end of the term and should have put money into a financial vehicle to allow for this.

bbfc

simon2010 wrote: »

Yes our interest only period is coming to an end, but I cannot afford the repayments on the capital repayments.

Can they force us to do this even though my income and ex shows I cannot afford it.

Yes they can, if it was part of the agreement.

Your interest-only period is ending and you are now required to start repaying the capital. This is how it works and you should of really planned for it.

Have you contacted them?

simon2010

Thanks Krisdorey

I understand what you are saying, but our circumstances prevented us doing that and still do I am afraid. They said we could have 12 months on interest only and then review at the end of 12 months, that time has now come up, but circumstances have not changed. I need another 12 months, I have never missed a payment on this.


There is a very high possibility that I will lose my home surely?????

bbfc

Not missing any payments probably won't make any difference as you are coming to the end of your interest-only period.

Have you contacted them to discuss this?

simon2010

Yes, and looks like that from next month I will have to find another £550 per month that I don't have.....:(

This will only lead to repossession and a monthly fee of £55 to mange my account in arrears.......

What a mess!

Surely it does not make sense to do this to me.

Apples2

You have to think of the bigger picture.
After 2yrs on Interest only, you have a £12k backlog to catch up on, you would have to find that eventually.

The longer the IO goes on for, the larger that sum becomes which you will have to find, this is why IO is such a bad idea and the reason you should have something like an endowment running. Even this is high risk, we all know the endowment stories.

Not good for you now for sure but you can see where this would end up come the end of the term, you would have a huge amount to try to find.

bigadaj

What is the value of your home and the outstanding mortgage, the sensible option is to sell as fundamentally you cannot afford the loan you have, this is more complicated if in negative equity but the loan still needs to be repaid.