interest only mortgage wanted

skcollobcat10

oioiooioiooioi

Conrad

Call the FSA and ask for thier opinion firstly.

skcollobcat10

oioioioioioioioio

opinions4u

skcollobcat10 wrote: »

What will the FSA do? Are they able to change the decision of a building society?

They're the ones who regulate the mortgage lenders.

They're the ones who have effectively banned interest only mortgages.

Your lender is acting in response to what the FSA has told them to do.

antrobus

skcollobcat10 wrote: »

...Myself and my husband have perfect credit histories, we have never ever been in debt for the last 25 years.

I own 2 flats in my own name which I rent out through an agency, both have mortgages on them ...

Just an observation of how odd it is that some people don't seem to realise that a mortgage is a debt.

kingstreet

You already have a mortgage and want your lender to convert it to interest-only. Lenders tend only to do this when the borrower is in financial hardship and as a last resort.

Your chances of convincing a lender to do this outside policy are pretty slim I'm afraid. I suspect that had you tried to continue with the alteration on the telephone, you would have come to a dead end with a supervisor, or manager, before too long.

I'd suggest remortgaging elsewhere, but the difference in the rate would probably outweigh the saving you'd make from the interest-only option.

ILW

Why is going IO going to save any money?

kingstreet

Reduced payments for the period until the house sells and the mortgage is discharged.

ILW

kingstreet wrote: »

Reduced payments for the period until the house sells and the mortgage is discharged.

That would not save any money though, just defer the payment and add a little more interest.

kingstreet

If the OP is paying rent on the bungalow, she is probably more concerned about cashflow at the moment. The difference between IO and C&I for £145k is;-

£683.14 repayment (assuming 20 year term remaining)

£151.04 interest only
_______

£532.10 per month.

I take your point about not paying the mortgage back, which would be a serious long-term issue. However, I can understand the OP's point in these circumstances.

It appears a moot point anyway. The lender has refused the request.