Re-Mortgage due to health issues, Interest only.

GaryHarman

Due to a long term illness I need remortgage advice.

I am coming to the end of a 5 year deal with Santander and need to go interest only as I can not work, and I have been between ESA and JSA benefits for the last 5 years. I spoke with Santander a few years back asking if I can change to interest only and they refused unless I cleared all my debts, which was impossible.

Before I contact any Mortgage Advisors I believe I heard Martin Lewis make a comment on "This Morning" TV last year saying that if you have a long term illness, your GP can fill in a form that will help "force" your Mortgage lender in to letting you go interest only.

I have asked at my Benefits Office, called Mortgage Advice line, spoke with my GP but no one knows anything about this.

I am sure I was not dreaming but has anyone heard of this or know what it is called???

So far being ill has cost me over £100,000 and I am trying not to be forced into selling my house as I have equity in the property.

Until my illness can be diagnosed and my health improved, getting an interest only mortgage is the best option.

Any thought are appreciated.

John-K_3

Sorry to hear that you are not well. The bank would find it hard to justify lending to you on an interest only basis if you do not have a plan to repay the principal. Do you expect your condition to improve, or is this permanent? If the latter, I think that you could struggle.

GaryHarman

I'm undergoing further hospital tests now I have a decent GP.
I have a plan to repay but can't take release a pension or Equity Release for a couple of years, hence trying to force lender into going interest only for the moment.

John-K_3

You keep saying force, but I would be surprised if you can force a company to lend you their money on your terms, especially when what you are asking them sounds like it could be classed as breaching guidelines for lending. Banks cannot just hope that someone comes up with a plan to repay, they tend to need to see it.

I borrowed a decent amount interest free recently, and had to be very clear about how I would repay it, down to the point where they nearly did not lend as my !!!8220;savings!!!8221; were in a current account.

I wish you luck, but doubt you can force anything. Could you not try to extend for as many years as possible instead?

ACG

As others have said, I am not sure there is a way to force the bank to put you on interest only. Although I could be very wrong, but it is not something I have come across before.

Getting Interest only mortgages now a days is quite difficult.

kingstreet

Conversion to interest-only, at least for a short agreed period should be part of the toolkit of any lender wanting to help its borrowers. It's what's known as a forebearance measure designed to assist borrowers avoiding falling into arrears, arrears getting worse, or repossession avoidance.

You should call the lender and explain your financial hardship and ASK them how they can HELP you.

Don't demand and don't tell them what they HAVE to do.