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Got interest only will they switch me to repayment
Comments
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AFAIK Halifax won't allow an online PT where the mortgage is interest-only.
They are using the advised PT service as a way of regularly reviewing IO cases to ensure no-one gets a surprise when their mortgage is due to be redeemed.
Where they can, borrowers will be "weened-off" interest only.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 -
Is he the main income earner in your household?mumof5boys wrote: »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.
How old is he? What type of work does he do?
If you extend the term of the mortgage to, say, 35 years [whether you can or not will depend on the above] does he earn enough to cover it on paper?
It doesn't mean you'd have to keep the mortgage for 35 years. You could downsize and pay it off whenever you wanted. The considerable equity that you have will work in your favour whatever you choose to do.0 -
JimmyTheWig wrote: »Is he the main income earner in your household?
How old is he? What type of work does he do?
If you extend the term of the mortgage to, say, 35 years [whether you can or not will depend on the above] does he earn enough to cover it on paper?
It doesn't mean you'd have to keep the mortgage for 35 years. You could downsize and pay it off whenever you wanted. The considerable equity that you have will work in your favour whatever you choose to do.
yes he is, im at home with kids, so switching to repayment when imback to work was always in our thoughts. term currently 20 years, he is 43. dpends what age theyd let you go up to. yes good idea re: that. he doesnt earn enough on paper i dont think. im only 35. not once have halfiax asked me the value of my house approx. ive got over 400k in the house ?!?! but need the large house with 6 children etc0 -
mumof5boys wrote: »hubbys income doesnt cover the repayment only option so it would be mad of them to enforce.
Lenders will weigh up the wider risk of defaulting. If you are unable to make capital repayments. Then your ability to cope with any rise in interest rates must likewise be factored in. On the face of it your mortgage is unaffordable. Perhaps time to consider your options while you still have significant equity at your disposal.0 -
Term currently 20 years left, or 20 year term when you took out the mortgage?mumof5boys wrote: »term currently 20 years, he is 43. dpends what age theyd let you go up to.
What age they let you go up to depends on the type of work that you do. Santander allowed me to go up to age 75 as I do non-manual work.0 -
Sorry 20 years left . Hubby does do manual work .0
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Thrugelmir wrote: »Lenders will weigh up the wider risk of defaulting. If you are unable to make capital repayments. Then your ability to cope with any rise in interest rates must likewise be factored in. On the face of it your mortgage is unaffordable. Perhaps time to consider your options while you still have significant equity at your disposal.
It does "on the face of it " but we all know with self employed the past few years has been very tough with the recession and business being slow. 12 months time and the mortgage could be peanuts . Things are picking up all the Time but to get back to where we were will take time0 -
mumof5boys wrote: »Things are picking up all the Time but to get back to where we were will take time
Any number of factors could cause financial distress in the future. Assessment of affordability has to be based on what's known today. Over optimism with regards to finance is no better than gambling. Far better to be cautious and plan accordingly. With a £280k mortgage I wouldn't be sleeping very easily. Knowing that I'm running up against the sands of time. As it's no just interest rate rises, but the reduced term in which to repay the debt.0 -
Halifax, and other clients are keeping clients on their standard variable rate by adopting this approach on interest only arrangements.
This is spite of the fact that the regulator gave them the option to be flexible with existing borrowers under the mortgage market review legislation.
It stinks, and hopefully you can live with the SVR rate.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
What repayment vehicle did you have with your IO mortgage, shares, cash isa etc?:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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