Got interest only will they switch me to repayment

mumof5boys

hi, would be grateful of advice please

i have 280k mort with halifax (house value £750) rang up to get on new fixed rate as mine ended and was faced with their new entire mortgage review. so im currently on interest only. they wanted details on my endowment (i dont have one) so every so worried now that they will now say they will have to put me on repayment. there is no way i can afford to switch to repayment. what will happen ? she said if i increase term of mortgage they need all income details. my husband is self employed so his income no longer on paper enough to cover the mortgage. im so worried here i will lose my home. please guys any advice please :eek::eek::eek:

Foxy-Stoat_3

Can you not stay on an interest only mortgage and forget about repaying the £280,000 when the mortgage term is over?

You will have to down size at some point anyway, unless you know who the third name is on Heart FM.

ACG

I think with halifax you can product switch online. Where there is no human interaction things are a little different - although im not a massive user of halifax so cant be sure on their process 100%.

James_B.

The first thing to ask is what you are doing about the principal. It's probably fine not to have an emdowment if you can show that your savings are well on the way to pay it off at the required time, but not going to be so good if you simply aren't dealing with it.

In that case ten yes, the bank may well insist on you moving to repayment, and refuse to allow you to continue with a new fix.

Did they not ask about an endowment when you first took the mortgage out?

Typhoon2000

They can't change your existing mortgage so you can stay as you are. Thought any new deal as you have found out May require a mortgage review. You should look overpay what you can to lower your outstanding amount so you will be able to get a new mortgage for a lower amount when this one expires.

kingstreet

Halifax will go through affordability.

If you can afford to switch to repayment, you must switch to repayment, or remain on standard rate.

If you can afford only to switch to part repayment, part interest-only you must do that, or remain on standard rate.

If you cannot afford anything but interest only, they may still give you a new rate.

Worst case scenario, you remain on interest only and standard rate. They can do nothing else to you, apart from prevent you from having a new mortgage rate.

mumof5boys

Foxy-Stoat wrote: »

Can you not stay on an interest only mortgage and forget about repaying the £280,000 when the mortgage term is over?

You will have to down size at some point anyway, unless you know who the third name is on Heart FM.

im gonna start listening now !

mumof5boys

hubbys income doesnt cover the repayment only option so it would be mad of them to enforce.
the plan was always to down size when kids go or at least 1/2 of them !!!! we could easily buy a 3 bed and end up mortgage free in the same area.
i havent come clean to them yet so am trying to find out as much as i can before i go back to them and say i just have a life policy and not an endowment

thanks v much

Foxy-Stoat_3

mumof5boys wrote: »

im gonna start listening now !

Is that listening to Kingstreet's advice or Heart FM?

LOL

mumof5boys

ACG wrote: »

I think with halifax you can product switch online. Where there is no human interaction things are a little different - although im not a massive user of halifax so cant be sure on their process 100%.

it wouldnt let me do it online. thats only for the squeaky clean !

mumof5boys

Foxy-Stoat wrote: »

Is that listening to Kingstreet's advice or Heart FM?

LOL

LOL jamie theakston here i come !