extnding Interest only-worried about awkward questions

R.j.Belcher

Hi we took out a IO deal with Santander in 2006 at .49 ABR tracker fixed for lifetime. Best decision I ever made. We would like to spend some money on the house, around £10-15K and putting this on the mortgage sounds sensible. We have a £160k mortgage and about £100k equity. We have no plan to pay any of the loan off, just sell the house and move to Spain in 15 years when I retire (Brexit allowing). What I am frightened of is going to santander and they ask awkward questions about how do you plan to pay it off and they don't like the answer. Then that puts our existing deal in jepeoardy. Anybody been in this situation? Can they withdraw our existing deal if we don't have a repayment vehicle in place?
thanks
Rob

Thrugelmir

No reason why you couldn't add a second loan to the mortgage in the form of a homeowner loan. Probably be on a repayment basis. 
Santander should have written to you previously about how you intend to repay the interest only part of the debt. Selling the property is acceptable. Though when does your mortgage term expire, if you have no plans for a further 15 years. 

R.j.Belcher

Hi thanks for the reply, they probably did write to us but  we probably just stuck our head in the sand. It was going to be a tempoary thing then I found out about some large debts my wife had hidden which are still being paid off . We have 15 years left on the mortgage, i will then be 65, and the rate is for lifetime.  We would never be able to afford changing the whole mortgage to repayment as it would be about £1000pm but could manage another £100-£200 pm month for a add on.