When will banks bring in interest only mortgages for 6 months for anyone?

SausageChopsFace

Santander told us 8 weeks ago that we would be able to go on to a 6 month interest only mortgage once our 5 year fix ended (on 2 July this year), but when I spoke to them last week they refused to allow this. We found out on the same day that they have agreed to the new Mortgage Charter which will allow any mortgage holder (who is up to date with all payments - which we are) to transfer to a 6 month interest only without any questions.  Does anyone know when they are actually going to bring this in, as they haven’t yet, and for us it is now an expensive waiting game, as we have already transferred from our 5 year fix (2.49%) on to the 8%SVR as of 2 July?

TheAble

I don't believe a date has been agreed yet.

https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter

What's your plan after the 6 months are up though?

ACG

Have you looked at how much it will actually save you? 
As the mortgage will need to be brought back up to date. The 6 month i/o option in my opinion is only any use for people who are looking at selling up and need that extra space. If the plan is to remain then you can either afford it or you are delaying the inevitable and upping your payments in the longer run. 

SausageChopsFace

ACG said:

Have you looked at how much it will actually save you? 
As the mortgage will need to be brought back up to date. The 6 month i/o option in my opinion is only any use for people who are looking at selling up and need that extra space. If the plan is to remain then you can either afford it or you are delaying the inevitable and upping your payments in the longer run. 

Thanks for comment but I wasn’t looking for actual mortgage advice, just really looking for a date for when banks are going to be implementing the new commitments which they have publicly stated. It all seems to have gone quiet since the Mortgage Charter was published early last week, and I cant find any information on whether banks will change policy within days or weeks or even months. We will be paying off mortgage with capital released from another property sale, hence needing this only as a short term option.

Maka344

SausageChopsFace said:

ACG said:

Have you looked at how much it will actually save you? 
As the mortgage will need to be brought back up to date. The 6 month i/o option in my opinion is only any use for people who are looking at selling up and need that extra space. If the plan is to remain then you can either afford it or you are delaying the inevitable and upping your payments in the longer run. 

Thanks for comment but I wasn’t looking for actual mortgage advice, just really looking for a date for when banks are going to be implementing the new commitments which they have publicly stated. It all seems to have gone quiet since the Mortgage Charter was published early last week, and I cant find any information on whether banks will change policy within days or weeks or even months. We will be paying off mortgage with capital released from another property sale, hence needing this only as a short term option.

It’ll probably take them a few weeks to implement changes, there’ll be system changes too. Sadly, the banks are far quicker at changing their products in the back of rate increases than they are trying to help. 

ACG

Maka344 said:

SausageChopsFace said:

ACG said:

Have you looked at how much it will actually save you? 
As the mortgage will need to be brought back up to date. The 6 month i/o option in my opinion is only any use for people who are looking at selling up and need that extra space. If the plan is to remain then you can either afford it or you are delaying the inevitable and upping your payments in the longer run. 

Thanks for comment but I wasn’t looking for actual mortgage advice, just really looking for a date for when banks are going to be implementing the new commitments which they have publicly stated. It all seems to have gone quiet since the Mortgage Charter was published early last week, and I cant find any information on whether banks will change policy within days or weeks or even months. We will be paying off mortgage with capital released from another property sale, hence needing this only as a short term option.

It’ll probably take them a few weeks to implement changes, there’ll be system changes too. Sadly, the banks are far quicker at changing their products in the back of rate increases than they are trying to help. 

In fairness to the banks, rate changes are expected. 

MattMattMattUK

Maka344 said:

SausageChopsFace said:

ACG said:

Have you looked at how much it will actually save you? 
As the mortgage will need to be brought back up to date. The 6 month i/o option in my opinion is only any use for people who are looking at selling up and need that extra space. If the plan is to remain then you can either afford it or you are delaying the inevitable and upping your payments in the longer run. 

Thanks for comment but I wasn’t looking for actual mortgage advice, just really looking for a date for when banks are going to be implementing the new commitments which they have publicly stated. It all seems to have gone quiet since the Mortgage Charter was published early last week, and I cant find any information on whether banks will change policy within days or weeks or even months. We will be paying off mortgage with capital released from another property sale, hence needing this only as a short term option.

It’ll probably take them a few weeks to implement changes, there’ll be system changes too.

There are legal and regulatory hurdles to be overcome as well, currently regulations do not allow people people to be transferred to interest only on a whim, banks will need to do due diligence etc. That process will then need to go back for approval, it will take time.

Maka344 said:
Sadly, the banks are far quicker at changing their products in the back of rate increases than they are trying to help. 

As ACG says banks are geared up for rate changes, they are an expected part of their business. The adjust rates to reflect their borrowing costs and market conditions on a regular basis. Or do you expect them to lend to consumers at a rate lower than they can borrow the money themselves, so becoming loss making?