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Interest only Mortgage to repayment
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Posts: 9 Forumite
Can you change from a interest only to a repayment mortgage without having to find a deposit ?
I realise the payments will be more, but providing you can afford the monthly payments, without having to find any lump sums, except for transfer fees etc. it would seem to make sence.
Any advice would be greatly appreciated.
Thanks
I realise the payments will be more, but providing you can afford the monthly payments, without having to find any lump sums, except for transfer fees etc. it would seem to make sence.
Any advice would be greatly appreciated.
Thanks
0
Comments
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Most lenders would be happy to change a mortgage from interest-only to repayment. Not many would charge a fee for this alone.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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Thanks kingstreet, but my question was, would there be any deposit payment required ?
Thanks0 -
Better still ( if you are disciplined) would be to keep it interest only and make overpayment every month as its gives you more flexibility than a repayment mortgage.0
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You only need a deposit/equity if you are moving house, or equity in the property if you are remortgaging to a new lender.
You wish to alter an existing mortgage, which, frankly, the lender is already stuck with. Changing from interest-only to repayment is a basic admin issue which requires no status checks and nothing but a small admin fee, if anything.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 -
If you stay with your cuurent lender probably not but why not just overpay that way you can revert to the lower payment whenever you want.
If you change lender it will depend on normal LTV criteria.
What's the mortgage?
What's the house work?0 -
getmore4less wrote: »If you stay with your cuurent lender probably not but why not just overpay that way you can revert to the lower payment whenever you want.
If you change lender it will depend on normal LTV criteria.
What's the mortgage?
What's the house work?
Could you clarify your first para.
What is LTV ?
Sorry to sound a bit dum dum !
Mortgage is approx. 170000, property value 220000
Thanks0 -
Remain on interest-only and make voluntary overpayments to reduce the mortgage balance, without tying yourself to higher fixed monthly repayments of capital.
£170k on £220k gives a loan to value of 77%.
This is the mortgage divided by the property value.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 -
Could you clarify your first para.
What is LTV ?
Sorry to sound a bit dum dum !
Mortgage is approx. 170000, property value 220000
Thanks
LTV = Loan to Value (normally the ratio ie 90% mortgage)MFW - <£90kAll other debts cleared thanks to the knowledge gained from this wonderful website and its users!0
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