Advice on my mortgage please

I_will_win

I am on a repayment mortgage with BoS,and pay a reasonable sum of £260 a month. Would i be able to make my payments less if I go to an Interest only mortgage??? I am not tied in just now and would be looking to sell my house in a few years time.

Any advice would be great

ACG

If you went to interest only it would lower your repayments.

Getting on interest only is the difficult part.

holly_hobby

Unless there is a lowish LTV, I would say no ....

Indeed Natwest/RBS have also announced they are pulling out of interest only mges ....so expect the rest to stampede behind them .... the death knell has indeed rang on these !!!

H x

I_will_win

Hi ACG, What are the problems that arise to get onto the interest only?? Thanks

kingstreet

The lender is unlikely to approve a switch to interest-only, unless you are in financial hardship and only then for a very limited time, if at all.

It's completely at lender discretion.

ACG

In the past Interest only mortgages were there for people who had some sort of savings plan in place or investment type product - such as endowments.

Interest only wasnt really meant as a way to effectively just pay rent (ie never own any more of the property).

As the credit crunch hit and houses prices dropped a lot of those people who were on interest only were then in negative equity.... banks dont like the thought of that, so gradually have pulled out of it.