Mortgage deal expired but want a new deal with no early repayments fee

abbas5001

Hi all

My mortgage deal with the bank of Scotland expired a number of years ago and I have been on the standard lender rate of 4.95%. It's an interest only mortgage for £150k.

The rate I am on is pretty high but the situation is a little complicated, I don't earn the same money as I did when I took the mortgage out so probably wouldn't get this mortgage if I applied now with the bank or a remortgage with another lender who would treat it as a new application.

I would like to get onto a cheaper rate to lower my monthly payments so can see renewing with the bank of Scotland as the only option. However, I may be in a position to clear the mortgage within the next 24 months so I'd want a deal with no early repayment charge or one that is for 12 months only - does such a deal exist? If so, how feasible is it I can get onto it? Bearing in mind interest only mortgages are a rarity these days.

I have been on the phone to the bank numerous times today passed from dept to dept and on hold for ages and have given up for now.

getmore4less

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

seems to cover your options as an existing borrower

looks like the best you can do is knock about 1% off for 2 years deal


Run the numbers with your estimated date for your cash with 2% penalty in 2nd year.

SMGee

It's worth calling BOS as they may be able to offer better rates for an existing customer than the ones advertised. If you look for a tracker rate rather than a fix you won't be tied in or have early repayment penalties - but it does leave you at the mercy of interest rate rises.

If you switch rate, rather then remortgage, there are often very few checks with your current lender. I just switched rate with Nationwide, knocking 3% off what I was paying, and only had to have a telephone interview and that was it. No affordability checks etc.

abbas5001

SMGee wrote: »

It's worth calling BOS as they may be able to offer better rates for an existing customer than the ones advertised. If you look for a tracker rate rather than a fix you won't be tied in or have early repayment penalties - but it does leave you at the mercy of interest rate rises.

If you switch rate, rather then re-mortgage, there are often very few checks with your current lender. I just switched rate with Nationwide, knocking 3% off what I was paying, and only had to have a telephone interview and that was it. No affordability checks etc.

Gave them a call today - 45 minute wait! - and i had 30 mins before i had to go to work so the advisor said they would have to do a mortgage review over the phone which will take 1hr and 30 mins. So i had to leave it until next week.

However, he said they run through lifestyle questions such as monthly spend on leisure etc as you may know the banks have started this in the last few years but would also require the tax codes from my p60s which i think would be a problem as this will show my true wages over the last 2 years (they have dropped significantly). I am then scared they might turn around and say this mortgage should not be given to you!

Thrugelmir

Lenders will using the opportunity to review borrowers on interest only mortgages. For the obvious reason that they pose a far higher risk than a borrower who already has a repayment mortgage. With interest rates only going to rise. Those on interest only deals are the most exposed financially.

amnblog

The fact you may not meet criteria now does not necessarily mean that BOS will not offer you an alternate rate.

Nor should you worry about them altering the terms of what you have based on what they find out about your current situation.

They simply have a policy of gathering comprehensive background information on interest only cases to help protect themselves from future issues.