URGENT HELP NEEDED - Having trouble getting IF to change me to a IO mortgage

James_Power

I’m going to try and keep this short, If you need me to elaborate let me know.


I have a suspended reposition order on my property,

I haven’t missed a mortgage or arrears payment in the last 18months, I have another 18months of arrears left to pay.

I’m currently on a capital repayment mortgage and haven’t had a problem paying until the last interest rate rise, I’m now on the cusp of what I can afford but if there’s one more rise I’m going to go under. I phoned the bank, told them my situation and explained how I haven’t missed a payment and what will happen if the rates go up. So please can I move to an interest only mortgage to give me some breathing room.

They said no, because I’m in arrears and there is a court order in place If they change the mortgage I’m on, it will breach the order.

But If they don’t let me lower the payment, I’m going to go under, my arrears are £2500, my credit is shot so I cant get a loan and if I re-mortgage there is a chance I’ll end up even worse off then I am now.

The simple fact is if they let me go on interest only mortgage there should be no problems even if there is another 4 rate rises in the next 12 months I will still have enough of a buffer to keep my head above water,


But I need some advise – how can I get them to see reason? Or how do I get the court order changed to accommodate the changes I need,

ctabuk

Call in at your local Citizens Advice - they will write to the Lender - and once a dialogue is commenced between CAB - You and the Lender - things change -I wish you well

luckyfool

James,

If you have made the last 12 monthly payments on time, and can prove this and you have not got any court judgements in the last couple of years then you may well be surprised at the options available on a re-mortgage.

I would speak to a whole of market mortgage broker and get quotes looking at the remortgage option as well as you may well be able to improve on your current rate if you are currently on the variable rate with IF. This would also have the benefit of lifting the threat of repossession from over your head.

HelpWhereIcan

Citizens advice can be a very good point for some information, but I have seen anecdotal evidence of worrying tendancy for the advice from some branches to be to allow the repossession to take place!!!

From what you have described, I would tend to agree with luckyfool and urge you to seek advice from a whole of market broker as well. Make sure they have experience of helping people in difficulty and that they will not take the Michael by charging a huge fee.

As you quite rightly say, there is a chance that a remortgage would make things worth and an adviser worth their salt will warn you of this and try to help you see the long term effects/consequences as well.

Just do not lose your home because you did not explore all options - you may have more than you think.

Hope this helps

Good Luck