Easy to switch from fixed rate to Interest only?

paulpmp4

My partner and I have recently broken up and one of us is going to live in the house for another year until we decide what we are going to.

We are currenlty in the third year of a fixed rate mortgage but we are considering switching to interets only for 12 months.

Can this be done from a fixed rate to interest only? Would there be fees? Would the fixed rate be cancelled? Sorry so many questions.

AnotherJoe

The obvious, and only reasonable response, is to direct you to ask your questions to your mortgage company. Only they can possibly know the answers to these questions.

Thrugelmir

paulpmp4 wrote: »

My partner and I have recently broken up and one of us is going to live in the house for another year until we decide what we are going to.

Make sure that everything is documented. People have a tendency to change their minds or become obstructive.

To make a clean break and move on with your seperate lives. Make a decision as soon as possible.

kingstreet

You are requesting a change from capital & interest repayment to interest-only, on grounds of hardship presumably?

The current fixed rate will normally continue unaltered.

Unless there is a real chance of arrears, the lender may not be willing to grant this change. This is a joint and several liability which means you are both responsible for 100% of the monthly payment, whether residing in the property or not.

boab212

you can switch to IO, however the lender won't simply let you switch for 12 months. It will involve moving the mortgage over to an IO and meeting the lenders criteria for an IO mortgage.

Most lenders require either a minimum income, or enough equity in the house that upon sale you could realistically buy a home at the end of the term.

I would expect there to be any cost, as as stick with the same lender, assuming they offer IO mortgage.