Nationwide Mortgage - Switch to interest only

michthedolphin

Hi,

Looking for some financial guidance please!

I am currently on a tracker mortgage with Nationwide (No ERC).

I am weighing it all up and could do with 6 months breathing space at the moment,

So do you think I would be able to switch to a 2 year fixed and then request 6 months interest only? 

According to my calcs, the interest only mortgage would then be about £300 less than I am paying now, which would be ideal at the moment.

But not sure if this is possible?

Thanks for any advice

born_again

All you can do is ring & ask.

But would think that they will not let you switch to a 2 year fix & then say can you go interest only. 

Might be better to ask now, & then see where interest rates are in 6 months. Which given a election could be anywhere.

MWT

michthedolphin said:

I am weighing it all up and could do with 6 months breathing space at the moment,

So do you think I would be able to switch to a 2 year fixed and then request 6 months interest only? 

You'll need to talk to them obviously, but I assume you intend to use the 'Mortgage Charter' right to move to interest only for 6 months?

Do consider that at the end of the 6 month period your monthly payment will revert to a higher level than it was before as you have to pay more each month to cover the amount you didn't pay towards the outstanding loan amount during that period.

Also consider if changing your mortgage term might make more sense, with a view to changing it again when you can afford to do so at some point in the future.

michthedolphin

Hi, Thanks for the help!

Yes - Mortgage charter option and of course I am aware of the higher monthly mortgage once the six months has ended... But for me this is an option as I should be more financially stable later on in the year.

But as stated I don't know if I can fix and switch to interest only.

Cheers

Hoenir

Switching the actual mortgage product has no bearing on the outcome. Bottom line is that it's a loan with a fixed repayment date in the future.