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Need to reduce mortgage for 14 months!
Mkwhite
Posts: 5 Forumite
I am changing career and need to cut my mortgage drastically for a period of about 14 months while I train for my new career.
On completion of training I will be earning considerably more than I do now.
My question is can I switch to an interest only mortgage without an endowment or isa in place knowing full well that later I will revert back to repayment and over pay the mortgage?
Advice appreciated!
On completion of training I will be earning considerably more than I do now.
My question is can I switch to an interest only mortgage without an endowment or isa in place knowing full well that later I will revert back to repayment and over pay the mortgage?
Advice appreciated!
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Comments
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It will probably depend on loan to value and the lender concerned. The only way to find out is to ask them.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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I have about 25% equity!0
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Talk to the lender.
Ask them how it will affect your credit rating if they agree.
My own view is that it's not the responsibility of the mortgage lender to subsidise your training.
What other costs can you cut?0 -
Is extending the mortgage term an option for you?
As will reduce your outgoings will continuing to repay some of the capital.0 -
Most of the main lenders are talking about 50% maximum with a repayment plan.I have about 25% equity!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
As this is a short term thing what is the maximum term nowadays?0
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There isn't one set in stone.
Lenders have introduced restrictions on interest-only in terms of maximum loan to value and the need for a repayment plan to meet certain conditions.
You are asking for an ad-hoc arrangement and I expect the decision to approve that will depend on your individual circumstances.
You're going to have to contact the lender for a definitive answer, anything I say is complete speculation.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Ring the lender and ask.0
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