Changing to an interest only mortgage help please!

eslick

generally if you have an interest only mortgage you need to have a repayment vehicle to pay it back, as mentioned they are just covering their backs. Someone I worked with had an interest only loan for 5 years just to get on the housing ladder as he couldnt afford a repayment or the repayment vehicle. It worked out ok for him and he was young enough and has now been able to catch up as his salary went up and his girlfriend has a good job.

sarkin

goldfink wrote: »

many apologies and thanks ever so much! xxxx

Your welcome

dunstonh

You cant buy endowments any more.

AMILLIONDOLLARS

Did you not take out payment protection with your mortgage? If so, why have you not put in a claim as you were made redundant, the policy if you have one ,should cover your mortgage payments, in some cases upto 24 months.

AMD

wymondham

dunstonh wrote: »

You cant buy endowments any more.

is that so? - wow they have fallen from grace!

JimmyTheWig

Agree with what has been said.
You could keep paying this amount each month and in 20 years time still owe 100k with no means to pay it off.
All they are saying is that it is your responsibility to be able to pay it off.

if you are happy you can pay it (e.g. by selling your house) then that is fine.

dunstonh

wymondham wrote: »

is that so? - wow they have fallen from grace!

I think the last "advised" channel for endowments was 2003. About 6 years too late although ironically those that bought in 2002/3 will probably end up with nice surpluses as the charges were lower by then, the target growth rates were 6% and it was after the worst of the crash.

Some direct/execution only endowments laster a bit longer but they have gone now. I think there is still one provider that does one for mortgages but you would have to be pretty stupid to use it. Although clearly people still do otherwise they wouldnt offer it.

silvercar

Your lender is covering iteself by advising you that you need to repay the capital at the end of the mortgage term. As you have your exit strategy sorted (ie selling) there is nothing to worry about.

ixwood

But the fact that you haven't had a single viewing in 2 months is a problem. Are you sure you're not overvaluing it?

How long can you continue to pay the mortgage for? Even if you found a buyer tomorrow (seems a tad unlikely with 0 viewers in 2 months), it could take 3 months or more until you get any cash. Or it could be 3 months and then it all falls through and you're back at square one (or square -134 if you haven't had any income in that time).

ixwood

you need a job, any job and a hard objective look at what you can get for your house quick.