Can I pay just the interest?

pill84

Hi,

Is it possible to temporarily just pay the interest part of my mortgage without changing product/lender? Anybody got any experience of this?

Thanks

opinions4u

It's possible.

It has to be agreed with the lender.

It can damage your credit rating.

It may be better to cut back elsewhere.

Why do you want to do this?

_Andy_

pill84 wrote: »

Hi,

Is it possible to temporarily just pay the interest part of my mortgage without changing product/lender? Anybody got any experience of this?

Thanks

Have you rung your lender and asked?

pill84

opinions4u wrote: »

It's possible.

It has to be agreed with the lender.

It can damage your credit rating.

It may be better to cut back elsewhere.

Why do you want to do this?

I'm trying to move without selling my existing property, thus looking to reduce my outgoings and increase my lending potential. It would probably only be for 6 months until we can sell.

Thrugelmir

pill84 wrote: »

I'm trying to move without selling my existing property, thus looking to reduce my outgoings and increase my lending potential. It would probably only be for 6 months until we can sell.

You intend funding 2 mortgages?

pill84

Thrugelmir wrote: »

You intend funding 2 mortgages?

The interest on one and and full mortgage on the other.
This would be temporary until it's sold. It was just an idea.

_Andy_

It won't increase your lending potential whatsoever.

In terms of whether it will be allowed, as I implied above, you need to ring your lender and ask.

pill84

_Andy_ wrote: »

It won't increase your lending potential whatsoever.

In terms of whether it will be allowed, as I implied above, you need to ring your lender and ask.

I assumed (maybe wrongly) that if my outgoings were reduced that my lending potential would increase..... If that is not the case, why do lenders want to know all your outgoings and presumably restrict what you can lend based on your outgoings?

Thrugelmir

Your existing lender may well decline the application. Once the purpose is known.

kingstreet

pill84 wrote: »

I assumed (maybe wrongly) that if my outgoings were reduced that my lending potential would increase..... If that is not the case, why do lenders want to know all your outgoings and presumably restrict what you can lend based on your outgoings?

You are supposing the lender will deduct the cost of the mortgage from your income. It may deduct the capital amount of the outstanding mortgage from your maximum borrowing power.

It varies from lender to lender.