repayment to interest only

littlemisscarole

I have a repayment mortgage with future mortgages which is crippling us as the payments are so high and it has a hefty penalty attatched for the next 2.5 years.
I wanted to change to interest only to bring the payments down for the short term until I can change lenders but after paying a fee and being led up the garden path, I was then told that it is no longer possible and there was nothing I could do about it!!!!!
Also I would like to move within the next 6 months or so and this would not be possible unless the payments can be reduced. Am I right in thinking if I can somehow switch to interest only, I can use the money saved to get another mortgage on interest only for the length of the original term
to allow me to buy a property with more financial potential?
There are so many questions to ask. I still have a little equity left in the property so a deposit is not a problem it's just about getting the product right.
I really don't want to have to swallow the penalty unless I have to but I feel like I have not been given to many options at this stage and future have misled me terribly and I feel really let down and angry. :mad:
Can anyone advise?

meanmachine_2

I'm afraid all banks act in the same way - particularly "sub prime lenders" like this one.

If you're on a tie-in intro rate, then to get out of it, you have to pay the fee.

If you didn't want to be tied in, then I'm afraid you shouldn't have gone for that deal.

Brokers on here might be able to help, but I doubt there's any way out of this.

You have to weight up the costs of paying the redemption charge against the "saving" you'll make by moving to a high street lender on I/O.

By the way, what provisions do you have for repaying the capital?

herbiesjp

Why are you with future mortgages?

Did you have credit problems in the past? Was there something about the property type that meant you had to go with them?

Is there anything that may still be relevant if looking for a lender today?

littlemisscarole

meanmachine wrote:

I'm afraid all banks act in the same way - particularly "sub prime lenders" like this one.

If you're on a tie-in intro rate, then to get out of it, you have to pay the fee.

If you didn't want to be tied in, then I'm afraid you shouldn't have gone for that deal.

Brokers on here might be able to help, but I doubt there's any way out of this.

You have to weight up the costs of paying the redemption charge against the "saving" you'll make by moving to a high street lender on I/O.

By the way, what provisions do you have for repaying the capital?

I don't have any means to repay the capital because I don't intend to stay on interest only repayments in the longterm. I much prefer to have a repayment mortgage. This is only for the next 2-3 years in which time I hope to have made some money on property to reduce the repayment mortgage payments. And I will then be in a much better position financially.

littlemisscarole

herbiesjp wrote:

Why are you with future mortgages?

Did you have credit problems in the past? Was there something about the property type that meant you had to go with them?

Is there anything that may still be relevant if looking for a lender today?

Yes my partner has had a few problems in the past and we are currently working on building a new credit rating for him. It's going really well and I have just got recent reports of both of our status and we seem to be in a much better now than we were then.