santander/alliance & Lec change in additional lending rules

MINMOUSE

I have an Alliance & Lec mortgage which is 50% repayment 50% in only . House is worth min £250000 and mortgage 80000.. Called to ask if I could take additional loan of £8000 and add to 11 years left of repayment but was told that this was not possible unless I change whole mortgage to repayment! This would be fine for us if we had 20 years to go but the interest only part only has 4 years to go. Has anyone else been told this. I did ask call handler when this change happened and if this was long term but she was v v v vague.

Simon_gloster

I'm afraid thats correct.

You will not get the £8k unless you can provide their acceptable repayment evidence for the existing interest only, or as you found out, change to repayment.

If you try and call their bluff and say i'll move my business elsewhere, you'll have this issue nearly everywhere you go.

Property value is irrespective. Abbey will do IO under 50% LTV, but as I said you'll have to provide evidence how you pay it back.

Dave_Ham

This is absolutely their current policy and they will not back down..

Incidentally, with only 4 years to run do you have a repayment vehicle to repay the mortgage?

There are main stream lenders that will still take this on interest only terms, subject to tie ins etc..