Bank of Scotland mortgage prisoner - please help

davids3511

Edi81 wrote: »

I’d suggest you head to the dealing
With debt board.

Do you have any arrears on the mortgage? Or have you ever?

Bank of Scotland usually allow you to switch mortgage online so this is unusual...

We had arrears about 2011.

dwsjarcmcd

If affordability is your issue, there is a FCA transitional rule that states it is acceptable for lenders to accept a situation where borrowers fail affordability tests on the lower rate, where they have demonstrated that they have been able to meet the payments on a previously higher rate. This would appear to be your situation, so I think your best option is to phone Bank of Scotland and discuss it wit them.

RichieBoy56

'Bank of Scotland usually allow you to switch mortgage online so this is unusual... '
Not if you are on an Interest Only mortgage they don't. They refer you to one of their other group brands and you will have to jump through their affordability checks. I know, I've been there.


Please check your facts before giving advice.

Thrugelmir

davids3511 wrote: »

Would he not have to pay stamp duty? I may have given the wrong impression in my post, we are comfortably paying the mortgage every month but wouldn't have the excess to make much of an impact on the capital sum. I can't see how a few thousand in this particular situation would make much difference to the affordability criteria. Obviously the mortgage would be paid sooner but a drop of 1-2% in the rate would make a much bigger difference which is why I asked for guidance.

There's the real issue. You are barely managing at current record low interest rates. In time interest rates will rise. Whether it be through the BOE or market forces. Lenders have to protect their own margins. Lending rates are set to reflect risk of default across a book of mortgages. Accounts that do default are very expensive to manage and often result in a loss to the lender. As matters quickly spiral out of control.

You need to continue with your current plan of paying off higher interest rate debt. Then reappraise your options in the future.

Alternatively lenders are very supportive of people that downsize or buy a cheaper property. Providing that the released equity is used to repay debt. Not an easy decision to make. However would potentially leave you with an owned roof over your heads in retirement.

davids3511

RichieBoy56 wrote: »

'Bank of Scotland usually allow you to switch mortgage online so this is unusual... '
Not if you are on an Interest Only mortgage they don't. They refer you to one of their other group brands and you will have to jump through their affordability checks. I know, I've been there.


Please check your facts before giving advice.

So I wonder if we revert to a repayment mortgage will I suddenly get the option in my online account? I could manage a repayment mortgage, it'll just delay the paying off of debt by a year or so but they are on 0%