Bank of Scotland mortgage prisoner - please help
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davids3511
Posts: 44 Forumite
I recently noticed on one of MSE's regular emails, some banks are helping mortgage prisoners which prompted this post. I have a 180k mortgage with Bank of Scotland which is fully up to date with no arrears or missed payments. However, due to the high rate it is on interest only and has been for nearly 8 years. I am 55 so will possible only get a 20 year max mortgage with them.
The reason I am stuck is that my partner runs his own business of which I own 50% as well as being employed. The house is in my name only and I'd fail the affordability test miserably but we comfortably pay the mortgage every month. I'd like to go to a repayment mortgage on a better rate. Have I any hope with BOS? What will they ask and what deal are they likely offering us prisoners?
The reason I am stuck is that my partner runs his own business of which I own 50% as well as being employed. The house is in my name only and I'd fail the affordability test miserably but we comfortably pay the mortgage every month. I'd like to go to a repayment mortgage on a better rate. Have I any hope with BOS? What will they ask and what deal are they likely offering us prisoners?
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Comments
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No clear why your partner cannot be added to the mortgage. At the very least you should be overpaying by whatever you can afford. At least then the debt will be reducing and equity building. To obtain a mortgage with a 20 year term you'll need to evidence guaranteed retirement income.0
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Why haven’t you tried to look at your mortgage account online and see if you switch to a fixed deal from SVR?0
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Thrugelmir wrote: »No clear why your partner cannot be added to the mortgage. At the very least you should be overpaying by whatever you can afford. At least then the debt will be reducing and equity building. To obtain a mortgage with a 20 year term you'll need to evidence guaranteed retirement income.
Would he not have to pay stamp duty? I may have given the wrong impression in my post, we are comfortably paying the mortgage every month but wouldn't have the excess to make much of an impact on the capital sum. I can't see how a few thousand in this particular situation would make much difference to the affordability criteria. Obviously the mortgage would be paid sooner but a drop of 1-2% in the rate would make a much bigger difference which is why I asked for guidance.0 -
Thrugelmir wrote: »No clear why your partner cannot be added to the mortgage. At the very least you should be overpaying by whatever you can afford. At least then the debt will be reducing and equity building. To obtain a mortgage with a 20 year term you'll need to evidence guaranteed retirement income.
Just to add, my partner is 45, I'll have a civil service pension in addition to my oap and there is about 90k equity in the house.0 -
How much are you able to overpay, and how much have you actually been overpaying?davids3511 wrote: »I have, there are no options in there for switching. I'll have to ring them and I'm very anxious by nature and knowing what the procedure is would help alot.0 -
John_G_Jones wrote: »How much are you able to overpay, and how much have you actually been overpaying?
We overpay nothing at the moment, there are other debts on higher interest rates that need paying first.0 -
I’d suggest you head to the dealing
With debt board.
Do you have any arrears on the mortgage? Or have you ever?
Bank of Scotland usually allow you to switch mortgage online so this is unusual...0 -
What rate is the current mortgage?
You say you want to switch to a repayment product but the consequence of that is you actually have to repay an element of the capital each month as well as just the interest (OK, this should be obvious) - the point I am making is that for a £180k mortgage over 20 years you need to find c.£9k pa IN ADDITION to your interest payments to fully repay the mortgage. (Capital/Interest split for each monthly payment will obviously be different but as a back-of-a-fag-pack calculation it's close enough).
Do your expectations for a reduction in rate permit such a hefty capital repayment strategy? You must be on a very high rate currently if so.0 -
TrickyDicky101 wrote: »What rate is the current mortgage?
You say you want to switch to a repayment product but the consequence of that is you actually have to repay an element of the capital each month as well as just the interest (OK, this should be obvious) - the point I am making is that for a £180k mortgage over 20 years you need to find c.£9k pa IN ADDITION to your interest payments to fully repay the mortgage. (Capital/Interest split for each monthly payment will obviously be different but as a back-of-a-fag-pack calculation it's close enough).
Do expectations for a reduction in rate permit such a hefty capital repayment strategy? You must be on a very high rate currently if so.
Rate is currently 5.2%, we do have capacity to repay at a higher amount every month. We had a plan to be debt free and apply for a mortgage in 2 years but if I can get the rate down now that would help greatly. There will be a 45k capital repayment in about 2 years too. I appreciate everyone trying to help with overpaying and so on but we have all that under control are prioritising higher interest debt at the moment. I really just want help with applying to Bos to go under a new rate while right now we would fail affordability tests. Martin send a heads up recently and I was hoping to know more about the stance Bos will take before I ring them.0
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