Switching to interest only & avoiding any ER charges

Edfunk

Any advice needed !!

Unfortunatly our circumstances have changed drastically and we need to switch to an interest only mortgage asap - current mortgage is with Birmingham Midshires (£150k loan - repayment of £1100 per month). We are also tied in until May 08 and would like to avoid any early repayments fees etc (approx 6k:eek: )

Is it going to be possible to keep our existing deal - but on interest only ??

What timescales would we be looking at ??

Would it be best to go through BM or the agents/broker we got the mortgage through - original guy no longer works there.

Are there any other fees we may need to take into account ??

All help and thoughts appreciated !!

dwsjarcmcd

Changing to Interest only won't involve redemption fees, but they probably will charge you a fee for the administration involved.
Personally I would contact BM direct, to avoid a fee from the broker, which would be perfectly understandable

poppy10_2

Should be, if you contact BM directly and explain the reasons why you want to switch to IO temporarily.

Edfunk

dwsjarcmcd wrote: »

Changing to Interest only won't involve redemption fees, but they probably will charge you a fee for the administration involved.
Personally I would contact BM direct, to avoid a fee from the broker, which would be perfectly understandable

poppy10 wrote: »

Should be, if you contact BM directly and explain the reasons why you want to switch to IO temporarily.

Thanks for you advise folks !!!! :money:

Will get on the phone first thing tomorrow am !!

mazza1970

I have my mortgage with Birmingham Midshires, and due to my circumstances changing, I telephoned them today and asked could I switch to interest only until I get myself sorted ( hopefully it will only be temporary), no problem they said, paperwork with quote on and forms to sign will be sent out to me, they do charge an £85 admin fee for changing which you can add on to your mortgage, or pay by cheque or debit card. Hope this helps.

MarkyMarkD

I agree with the other comments. Nothing to be gained here by involving a broker - it's a simple change of repayment basis and going straight to BM will get you the outcome you desire.

MortgageMamma

Just to add, I have my clients approach me about stuff like this all the time. when a broker is paid commission or a proc fee its for future work which they will not earn for, as well as that particular transaction. Mortgage brokering is not only an advice industry, its a service industry and a good broker will see it as such. It is important to find out when a clients experiencing temporary financial difficulty, as we are there to support and advise our clients at these times.

I know your broker no longer works for the firm, but you can look him or her up on www.fsa.gov.uk/register

If they are worth their salt they will do this for you, and offer you support if you need it (its not all about sales you know!)

Best of luck and I hope your finances get better soon

MM

Edfunk

Hi Folks !!

Quick update: I called BM and they sent out a form to complete the very next day !!

Lady i spoke to was very helpful and explained that it was not a problem - she then let slip that they are recieving more and more calls daily for requests to switch to interest only !! Signs of things to come ?? I hope not !!

Anyway..........thanks for your replies !! Most appreciated !!