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Got interest only will they switch me to repayment
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In which case I can't see them extending the term much if any.mumof5boys wrote: »Sorry 20 years left . Hubby does do manual work .0 -
Can you afford the mortgage (in reality, forget about on paper) if it stays interest-only and you stay on the SVR?0
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As many have asked, WHY is it interest only? What repayment vehicle was used when you took out the mortgage?0
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I can see the reason for IO here. The OP has a high value house (£750k) with about 38% LTV. I presume they will enjoy living in the house for now with their kids
then sell at some point and downsize to pay off mortgage completely. They have almost £500k equity.
I've done similar myself to get a much bigger house and when things became easier I switched to a repayment.Stuck on the carousel in Disneyland's Fantasyland
I live under a bridge in England
Been a member for ten years.
Retired in 2015 ( ill health ) Actuary for legal services.0 -
Sale of property is an accepted repayment vehicle for a lot of lenders if you have enough equity.0
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As many have asked, WHY is it interest only? What repayment vehicle was used when you took out the mortgage?
When we took out the mort it was repayment then the rates started shooting up in 2004. We ended up switching in a bid to keep on top and as we've gone on it's stayed . It was always the intention to switch back when we have two incomes again ( about 2 years )0 -
Thx for all your comments I will post the outcome when I call Monday for other peoples info0
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ok so the update was:- now got to do the full affordablilty check and they will put as much of the mortgage on to repayment that we can afford but still keeping mortgage within limits of affordability. we will see what they think we can afford now !!0
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Sounds like a sensible resolution OP.
Hope the figures all work out well.0
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