Part repayment/part interest mortgage questions

shuck

Hi all,
Our three year fixed rate of 3.59% with the Post Office (Bank Of Ireland) finished in December 2014 and we have reverted to the SVR of 3.99%. Our mortgage is 236k (house value is 290k) and is split 35% repayment and 65% interest only. I'm trying to stay on a split mortgage at the moment as my wife is on maternity leave and isn't due back to work until May.


I’ve got a few questions:

• When I called the Post Office to see what deals they have and request an outstanding balance, they mentioned that they could revalue the house using a price index and that by doing this it’s gone up to 302k. I’m assuming this isn’t gospel and I still use the purchase price when looking at new deals with other providers.
• I’m having a very hard time finding mortgages that are split between interest only and repayment. Is this type of mortgage not offered anymore? If we want to keep this split arrangement, the best deals the Post Office have are 2yrs fixed @ 2.99% or 5yrs fixed @ 3.95%.

Any help would be greatly appreciated.

kingstreet

Very few lenders now offer interest-only without a repayment vehicle and those that do may want a loan to value under 50%.

You may find it easier to take the customer retention product from your existing lender.

shuck

Thanks kingstreet. You've just confirmed what I was thinking.

Now to work out if it's best to go for a retention deal with the Post Office or go full repayment with a new deal at 2.19%. :cool:

MLSY

hi shuck
if thinking of changing lender bear in mind if your wife is on maternity leave ( congratulations ) not all lenders may consider her income if it is needed for the loan required

regards Ian

shuck

Cheers MLSY, we'll have a look around and see what offers are out there. If its too much hassle we'll wait till she goes back to work in May.

Do lenders prefer it if she has been back to work for a specified time after a maternity leave or will they be happy that she has gone back.

shuck

Called the Leeds building Society last night and they confirmed your advice MLSY. Mrs C is looking to go back to work mid May, and in order for her full salary to be taken into consideration Leeds BS will need a letter from her employer confirming her return to work date and the salary/hours she will be on.

They also said they wouldn't be able to take her salary into consideration until 3 months before her return to work date. Looks like I'll be sat on the SVR until then.

MLSY

hi shuck
why Leeds ? thought you were with post office
not every lender has the same criteria regard maternity so it could be that you don't have to sit on SVR if you don't want to