changing mortgage from interest only to repayment with same lender.

imustbedreamin

hi guys,

was discharged in Nov 2011 and managed to keep the house.

im speaking theoretically here but would we be able to change from a interest only to a repayment with our lender C and G or would we have to re apply (and probably get turned down)

I dont really know how it all works so please excuse my ignorance.

thanks in advance.

wayforward_2

i don't know the general answer but we are on interest only and were sent a letter reminding us to plan for repayment. When I called them (to see if we could extend the term) they said they could only do that if we went to repayment - i didn't get the impression that it would require a new application etc.

ALIBOBSY

We didn't go bankrupt, but when we went from interest only to repayment it was simply a form to fill and an admin fee (£75). But that was a few years ago now. TBH I can't see them refusing as it is in their interest to ensure the mortgage can be paid off-can see the refusing people wanting to go the other way though.

Another option is leave it as interest only and ask about overpayments against the mortgage. If you can make these it means you can pay as and when you can afford it.

Or start a savings pot/plan to put away enough to clear the mortgage. Once you have enough you can either pay it off early or wait till the end of the term to pay off.

Ali x

iquit

I am planning to approach my mortgage providor with this same proposition. Just waiting for my ipa payments to finish then will automatically pay the same amount towards my mortgage. I'm sure a quick phone call to C&G would give you the answer you need. All the best.

Mouse1812

Think about it: You want to pay them MORE, no lender in their right mind is going to refuse that.

imustbedreamin

thanks for your help all.

Lou67

I don't see any reason why they would refuse, if you are now in the position to pay more. Make an appointment with them.