We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
would this be a good idea and would the bank allow it?

midlander81
Posts: 205 Forumite
Hi Folks,
Currently working to repay around 40K of debt asap. Luckily most of our debt it at 0% or loans with a decent rate (7.9% and 4.9%).
we have about 7K of CC debt that it at 18.9%. I really don't want to apply for another loan,interest free CC etc as I am trying to build up my credit file - it was hammered by me making multiple applications.
I own my house and have about 80K equity. I am not prepared to remortgage but was wondering if the bank would allow me to go on to interest only for 12 months? This would free up £400 per month and coupled with the payments that we already make, would clear the 7K 18.9% CC debt.
Do you think that the bank would allow this and is it a good idea?
Currently working to repay around 40K of debt asap. Luckily most of our debt it at 0% or loans with a decent rate (7.9% and 4.9%).
we have about 7K of CC debt that it at 18.9%. I really don't want to apply for another loan,interest free CC etc as I am trying to build up my credit file - it was hammered by me making multiple applications.
I own my house and have about 80K equity. I am not prepared to remortgage but was wondering if the bank would allow me to go on to interest only for 12 months? This would free up £400 per month and coupled with the payments that we already make, would clear the 7K 18.9% CC debt.
Do you think that the bank would allow this and is it a good idea?
0
Comments
-
I don't know who your lender is but I'm pretty certain that they won't agree to that. They have tightened up a lot on interest only mortgages and they are extremely difficult to get now.
There is no harm in asking but I don't think it will be allowed.
0 -
I doubt they would agree to it and I don't think it is a good idea.
If you don't need to apply for any new credit/a remortgage for the next few months then I don't really understand the reluctance to make a credit application to try to move it elsewhere. A single credit application or even 2 will have very little impact on your ability to get credit after a few months.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
I doubt they would agree to it and I don't think it is a good idea.
If you don't need to apply for any new credit/a remortgage for the next few months then I don't really understand the reluctance to make a credit application to try to move it elsewhere. A single credit application or even 2 will have very little impact on your ability to get credit after a few months.
Hi Tixy,
Your comments make sense. I think that it's more a case of not wanting to be rejected!! Have felt very stressed over financial situation recently and I know that If I applied for a 0% offer and was rejected it would make me feel worse!!!0 -
I think it is a good idea. Paying capital back on the loans with the highest rate of interest is mathematically the correct thing to do to minimise what is repaid. You can use the interest saved on credit cards to repay capital in your mortgage later.
You must make sure though, that you don't use this as an opportunity to spend more and increase your debt.
So ask the mortgage provider, cant do any harm.0 -
Hello,
I discussed this, this morning with my mortgage people. it would save me £80 a month but I would have to be on a DMP and classed as in financial difficulty.. which I don't know if I want to do (my issue is temporary until a massive invoice is paid) they actually seem to have allowed me to remortgage to a lower rate today instead, only gives me another £30 but it all helps.
there is no harm in asking they can only say no0 -
What about seeing if you can take a payment holiday? I thinkthat is more likely than changing the term to an interest only and may raiseless suspicion. Of course interest would still be charged during the holidayperiod but that would happen anyway under your suggestion. Also I don’t think theydo the same sort of credit checks that they would do for a term change like yousuggest. Just a thought.
YNWA
Target: Mortgage free by 58.0 -
I would very much doubt that your mortgage provider will offer interest only.
I am currently off on maternity leave and couldn't switch to interest only, so instead I extended the term of my mortgage back to 25 years so that my payments now are basically what they would have been paying interest only. Once I go back to work I will change my mortgage term back to 13 years.
This worked for me but I guess it all depends on your age and how many years you still have left to pay your mortgage.Wins:Smyths Gift Vouchers, Sat Nav, £100 Next Gift Vouchers, £250 Dunelm Mill Gift Vouchers, £720 D&G Perfume, £200 Asda Vouchers, Johnnie Walker Gleneagles Tickets, Edinburgh Virgin Festival Fireworks Tickets, Givenchy Dahlia Noir Perfume Set, Long Weekend in St Petersburg, Russia, £250 Selfridges Vouchers, £3000 Family Trip To LAPLAND!!!!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards