Interest Only Dilemma

toro451

I have an interest only deal with Britannia which expires end of August.
I have applied for a new deal, but have been rejected on the grounds that my repayment vehicle (Partner has a rental property which will be sold) is no longer acceptable.
I am told a transfer of equity on both properties will resolve this issue.
However.
As the new deal will be processed as a joint application I've hit the rocks again.
My partner has just been made redundant, and has outstanding loans of £9k.
As she currently has no income, Britannia are unable to advance me the full amount of the mortgage.
In September the mortgage will revert to SVR whichwill cost me another £160 pcm.
So the questions are -

1. Does my partner pay off the outstanding debt with her severance pay?
or
2. Do we let it roll until she gets another job and re-apply?

Thrugelmir

Depends upon on your personal financial circumstances taken as a whole. As potentially the BTL could become a liability in it's own right.

getmore4less

Whne does the full term run out or that August?

No execution only retention deal that you can get automaticaly rather than a new joint application.

http://www.britannia.co.uk/_site/channels/mortgage/existing-borrower/index.html

Might have blown this option if you have allready taken advised route

Brokers know more about this.

Wh05apk

Have you looked outside of Britannia? other lenders with potentially better rates may be available.


Think carefully about transferring everything into joint names, the legal costs could be quite high, there may also be stamp duty liability for both of you.