End of fixed rate to Interest only

Gaz23

My fixed rate is up in June this year, with about 79% left to pay is it possible/worth it to switch to interest only for 1/2 years to free up some cash for savings?

Jimbo1976

At 79% LTV I don't think your lender would allow you to switch to interest only unless you were experiencing difficulties in paying your mortgage.

Unless you have a repayment vehicle I doubt you could remortgage, though there is a Clydesdale product at 80% LTV through brokers where the first 3 years are on interest only before the loan moves to repayment. However I think there is a high level of payment shock when it moves over as you've got 3 years less to repay the capital. So unless your income is going to go up hugely during that period (ie qualifying as a barrister, solicitor etc) then I think its pretty risky

Gaz23

I will of had 2 lots of 2 years on fixed rate and paid off 6% already, its really just to fre up a bit of cash to pay for other things then i would move and/or go back to paying I&C

kingstreet

Lenders are withdrawing from interest-only lending.

With no repayment vehicle, you have virtually no chance in the current climate.

Gaz23

No problem, better find other ways to be thrifty!!

Thrugelmir

If you were hoping to free up cash to repay other debts. Then likely that your lender would spot this and decline your application.