Interest Only Sale of Property Declaration Form

sunnybank1111

I'm looking to remortgage and my existing product is part repayment, part interest only. The repayment vehicle is an endowment which at present is projected to easily cover the the interest only amount. I've enquired about borrowing more money and looking for a fixed rate mortgage with a term ending 4 months short of the term of the existing mortgage. The lender has said that (because of interest only component) I must sign an 'Interest Only Sale of Property Declaration Form" if I want to apply for this fixed rate deal. I'm not keen to sign because of the threat to sell my property if the endowment falls short of the required amount.  If the endowment underpaid, then I have other options to borrow money to make up the shortfall. Has anybody got experience of this and what are the pitfalls of signing?

Thanks.

davidmcn

What does the declaration actually say? The property isn't going to be repossessed if you're not in default.

[Deleted User]

it will say something along the lines that if it gets to the end of the mortgage term and you havent settled the debt through other means then you understand you will need to sell the property to repay the debt

You dont have to sell the property if you can pay the lender back another way