Swapping interest only mortgage to capital & repayment

onlyfoolsandparking

Ok so I've had a good search around this thread can't seem to find the answer although I'm not saying it isn't there.


Here goes, My partner and I have a 60k interest only mortgage on a property valued at approx 110K interest rate is SVR 5.0%, equity not really an issue. My question is can we ask to swap from interest only to a capital & repayment mortgage and stay with the same lender (Birmingham midshires).


Cant really go hunting in the mortgage market at the moment for reasons I don't want to go into yet and finally if they do offer a swap could I also ask for a starting point of maybe a 2-3 yr fixed, gotta be better rate the 5% and I need to start reducing capital owed.


Any thoughts?

dimbo61

Have a look on the lenders website for new deals for existing customers !
See what rates they offer.
You are on the SVR so no early repayment charges.
Can you afford to swop to repayment ?
Age, income, debts will all be taken into account

getmore4less

If they will offer a retention deal on interest only take that and overpay.

In the mean time just start overpaying or saving the money needed to clear the mortgage.

onlyfoolsandparking

getmore4less wrote: »

If they will offer a retention deal on interest only take that and overpay.

In the mean time just start overpaying or saving the money needed to clear the mortgage.

"Retention deal" what is that exactly?

Thrugelmir

Your existing lender will allow you to select another product, for e.g. a 5 year fixed rate mortgage.

With an interest rate of 5%. Overpay the mortgage by whatever you can afford.

onlyfoolsandparking

Thrugelmir wrote: »

Your existing lender will allow you to select another product, for e.g. a 5 year fixed rate mortgage.

With an interest rate of 5%. Overpay the mortgage by whatever you can afford.

Ah right, Forgive my stupidity here could just be the way I've read your reply, so the Lender will potentially let me choose another one of their products BUT with the same 5% rate or do you mean let me choose any (if I qualify of course) of their other products, Thanks