Interest Only to Repayment and Back

KaesarSosei

Hi,

We have a mortgage with about £110k remaining on a house that is now worth almost exactly that amount. When we took out the mortgage 4.5 years ago it was Interest-only but after about 6 months we voluntarily switched to repayment. 4 years later we could do with some "breathing room" for a year or perhaps 2 while my wife goes through a career-change.

Do you think the mortgage company (Ulster Bank) would allow us to revert to Interest only for an extended time? We have never missed a payment or had any other credit issues, no loans or outstanding credit card balances but at the same time don't have much savings.

Thanks

shortchanged_2

I doubt it as you have no equity. Things have changed a great deal with IO mortgages over the past few years.

saverbuyer

No chance of UB letting you go IO on those figures.

Typhoon2000

Doesn't help the OP, but this is the reason if your on interest only, you should overpay by the equivalent rather than changing to repayment.

Thrugelmir

KaesarSosei wrote: »

4 years later we could do with some "breathing room" for a year or perhaps 2 while my wife goes through a career-change.

Paying the mortgage should be a priority. Suggest you prepare a detailed budget and see what else you can cut out or cut back on. Kicking the can down the road so to speak. Doesn't solve your financial problems but merely defers them and potentially makes them toxic.