what is the impact on your credit score if you move from a repayment to an interest only mortgage?

icecoldinalex

I am currently on the 4th month of a mortgage holiday and the bank have told me I cannot extend the mortgage holiday beyond 6 mths. 
I am out of work and I don't see that changing anytime soon. The bank have told me that after the mortgage holiday, i can go on an interest only mortgage but that will affect my credit score.
I work in the financial sector and have seen colleagues offered jobs by banks only to be turned down when the fail a credit check. 
Will I face the same situation if I have this blemish on my credit score going brought about by moving to an interest only  mortgage?

Thanks in Advance for any insight provided by people who can advise on this.

[Deleted User]

Depends if they put a marker on to say it was moved to IO to avoid arrears.  Only the bank will tell you that.  

Actually changing from Repayment to IO isnt a bad thing, loads of people still have legitimate IO mortgages.  Its the banks financial difficulty team who can answer this question

[Deleted User]

Your credit file will show that you're on a repayment as the balance won't reduce.  Any impact on your 'credit score' is irrelevant and it's a gimmick only see.  Each lender will assess you on your debts and account management.

If you have a suitable repayment vehicle, there is nothing intrinsically wrong with interest only. However, your existing lender would know that you're doing it because of affordability problems.

It's certainly nothing that would cause you not to get a job, in any sector.