mortgage change

2makeit

i have a mortgage with halifax/bank of scotland,
it has 4 sub accounts-
2 i think are for charges,
1 is repayment mortgage,
1 is interest only,

my interest rate is 1.85%- is that good or bad?
i am now on repayment and interest payment each month,
is it possible to change to interest only?
as this would make a big difference.
i am not on a salary/steady income, so am not sure what i can do to make my situation better,

thanks

chelseablue

Im with Halifax and my rate is 1.49% so I would say 1.85 is still good


As far as Im aware lenders don't offer interest only any more but it may be different for existing customers

Contemptuous

Lenders still offer interest only mortgages, but only if you have something in place to repay the mortgage in full at the end of the term. A lender won't be looking to switch your mortgage to interest only if you're in financial difficulty.

Brock_and_Roll

At 1.85% it is practically "interest-only" already!! As a banker, I know how much lenders "pay" for their funds and given that Lloyds is only rated at a BBB+ they are most certainly not making much money on this one!


By any historical measure, 1.85% is an incredibly low rate, and whilst it may be possible to trim a few basis points off that, my instincts would be to pay off as much of the capital as possible whilst rates are this low, even it means scrimping - ultimately this will protect you when rates start to rise back to anywhere near their historical averages.

chelseablue

Brock_and_Roll wrote: »

At 1.85% it is practically "interest-only" already!! As a banker, I know how much lenders "pay" for their funds and given that Lloyds is only rated at a BBB+ they are most certainly not making much money on this one!


By any historical measure, 1.85% is an incredibly low rate, and whilst it may be possible to trim a few basis points off that, my instincts would be to pay off as much of the capital as possible whilst rates are this low, even it means scrimping - ultimately this will protect you when rates start to rise back to anywhere near their historical averages.

Sound advice here.


While rates are low I'm trying to pay off as much as possible. I bet your mortgage isn't as big as mine OP

MortgageMamma

Why do you wish to switch it all to interest only?

I agree its a good rate and I think its worth sticking with it. If you are in financial difficulty there are other options that can be considered, so call Halifax and talk things through with them

MM

2makeit

when i was on interest only it made a difference in payments,
it was half,

i am calling them to try and see options on it all,
im trying to get saving and pay some of it off if possible,

thanks for replying

Funny_old_game

Well just asking to interest only is never gonna happen...........seek plan b unless you have some sort of credible repayment vehicle on their list.

Only those who can PROVE they are in financial difficulty MAY get given repayment to interest only option during the pre litigation/possession stages, but even that is generally binned off these days from a mortgagee's perspective.