Interest only mortgages

btccbabe

I have an interest only Mortgage that finishes April 2020. Does anyone know if I can transfer it to somewhere else thereby reducing my monthly payments until it finishes. It was SUPPOSED to be a LIFETIME Mortgage but in my opinion was mis sold to me. I have complained to the FOS and had my complaint overturned, meaning I have to pay it back in 5 years time....may have to sell up to do so or go into Equity Release :eek: It would help, in the meantime if I could either extend it or reduce monthly payments.

shortchanged_2

btccbabe wrote: »

I have an interest only Mortgage that finishes April 2020. Does anyone know if I can transfer it to somewhere else thereby reducing my monthly payments until it finishes. It was SUPPOSED to be a LIFETIME Mortgage but in my opinion was mis sold to me. I have complained to the FOS and had my complaint overturned, meaning I have to pay it back in 5 years time....may have to sell up to do so or go into Equity Release :eek: It would help, in the meantime if I could either extend it or reduce monthly payments.

What made you think it was a lifetime mortgage? Very few are. What does it say on your mortgage terms? I doubt the mortgage company can renegade on a contract if it was genuinely sold as a lifetime mortgage.

Also if you cannot afford an IO mortgage now then I'm afraid you're in a bit of financial dodo.

michaelwr

I was with HSBC on a lifetime tracker but have been informed it will end this year and I need to move to a new product. I too see this as unusual particularly as I also have a repayment part with 10 years to run. I am now finding that in moving most lenders now only offer repayment which means I can move to a cheaper rate but my monthly payments will treble. I know people will think you should pay off anyway but in my circumstances, why should I want to payoff (which I could) when I can get a better return elsewhere or pay into an AVC?

Southend1

Surely it means by lifetime that the rate tracks something for the term of the mortgage rather than the term being until you die?

btccbabe

I thought it was a Lifetime Mortgage "Shortchange" because that was what I had originally and when I requested a top up amount I asked them for the same arrangement as previous, therefore assuming that was what I had been given.

Cariad71

Hi, so currently you have an interest only for 5 years with no repayment vehicle. You need to take out a repayment mortgage with a much longer term....20 years.....and this will lower monthly repayments.

louislim

What's the interest rate and the amount to be paid.

btccbabe

Thanks louislim and Cariad71. The amount to be paid back in 5 years time is £33,500 and the interest I THINK is 3.19%.


I wrongly assumed that as the initial borrowed amount was on a "paid back from my estate on my death" that this was the same.


Therefore, In my opinion, I was mis sold but the FOS blamed me for not reading/understanding the paperwork I was sent.

jamesd

Roughly how old are you and roughly what is your income from work and other things? How about your total amount of non-pension savings and investments/ If you're close to or over 55 years old, please also say something about he value of any personal pension pots, or work defined contribution ones. What's your credit record like, all on time payments or some problems? Roughly what is the property value now?

If you meet your lender's current lending criteria and are young enough you should be able to agree to a change to a repayment mortgage with longer remaining term.

If you are close to state pension age or the property value is high enough you might be able so switch to an equity release mortgage that would be paid back only on death.

btccbabe

Hi Jamesd...I am 63 years old at present 64 in September.
My monthly part time wage for 12.5 hours/week is £350 and I get a state pension of £291.48 paid fortnightly and roughly £7000 in savings etc
I have an excellent credit rating and have never had any problems repaying anything. My home is worth roughly £120,000.


I went into equity release but they, at present can't offer me enough to pay it off but have told me that when I reach 65, I will be entitled to release more as it goes up each year but from 65 onwards things could get a little easier. All I was hoping for was a way of reducing the £89/month I am paying now to give me some breathing space until I reach 65.