Mortgage Prisoner

RichieNotRich

justcat wrote: »

Not meaning to be rude but unfortunately, not everything you will be told will be positive.

I do realise that, but I was expecting that some of the Mortgage Brokers or IFA's on here would have some positive advice.

Here's hoping.

kingstreet

Leon_W wrote: »

Bank of Scotland have new deals for existing borrowers.


http://www.bosmortgages.co.uk/pdf/product-range-and-current-rates.pdf


Not the greatest I admit but there is a 2 year fix @3.59 available to you.

If they are following standard LBG protocol on IO NRV now, they will require the OP to switch to all C&I repayment, or part and part in return for a product transfer.

If he refuses, they won't offer a product transfer.

You only get a new product on IO if your affordability is so bad, they can't move you to part and part or C&I.

haras_nosirrah

The problem is then you are asking another lender to lend to you when you freely admit you can't afford to repay the debt without downsizing. While you say you will downsize in 12 years the lender cannot guarantee that and we see so many post on here saying that people have come to the end of interest only terms and don't want to move.

Best advice is to either take whatever bos can offer as no one else is likely to take you on and if you can overpay then pay off whatever you can to make the transition easier in the future. You don't want to be in a position where you don't have enough equity to buy a suitable property in the future as we see that quite a lot too

Leon_W

Funnily enough kingstreet......


I am currently a mortgage prisoner with Halifax. I have an interest only mortgage and would not meet current affordability criteria.


My deal was up and I submitted a product transfer online with sale of property as the repayment plan (fill out the declaration of intent) and had the offer through this very morning, 2 year fix @ 2.54%.


No problems or probing questions, nothing at all.

getmore4less

Down size now and get something affordable at lower rates that can be paid off in the the timescales.

brobs

Hi I'm new to this forum and not sure if I'm posting in the correct place??? I'm after some good advice. I'm currently in a mortgage with my ex to whom l have two children with. One 17 and one 12. We have been separated for 7 years. The first year of separation he paid child maintenance which helped to pay the mortgage however the payments soon stopped as did his contact (his choice). I have continued to pay the mortgage myself. A court order was made for me and the kids to live in the property until the youngest turns 18. However I'm now in a settle relationship and we would like to own the house together ourselves. I have no idea how to go about this or even if its possible. Any help ideas or advice would be appreciated. Thanks !

RichieNotRich

haras_nosirrah wrote: »

The problem is then you are asking another lender to lend to you when you freely admit you can't afford to repay the debt without downsizing.

Thanks for your reply but I haven't said that. I have a half share in a property with ex-wife with £225000 equity. I also have pension funds but I would prefer to retain these for the intended purpose.

Best advice is to either take whatever bos can offer

I will look into this.

amnblog

RichieNotRich wrote: »

Have you read the FCA documents that I have referred to?

You mean the one that says lenders should not (with regard to existing borrowers)


take advantage of the customer's situation or treat the customer any less favourably than it would treat other customers with similar characteristics


It's a broad statement with plenty of room for manoeuvre.


You are not being treated less favourably - BOS is not currently offering new borrowers interest only lending.

haras_nosirrah

RichieNotRich wrote: »

There are lots of low interest deals out there but my partner would not meet the current lenders requirements, and I am too old to get a mortgage of more than 7 years, which makes the payments unaffordable.
.

You do say a repayment mortgage is not affordable


Your equity in another property and your pension funds are of no relevance - the house is hers and her affordability is the most important thing unless you are planning on giving her all your money.

ACG

The transitional rules have not really been implemented by lenders very well unless you are staying put.

I can't see you being able to get interest only anywhere other than where you are.

I would speak to your lender and see if you can do a product switch.