A bit of advice needed,

Discussion in 'Bulletin Board ARCHIVE' started by Bossman, Jan 12, 2013.

  1. Bossman

    Bossman Well-Known Member

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    As anybody had to transfer their mortgage to interest only, I may have to do it for a short spell, I was just wondering what criteria was needed. Thanks
     
    Bossman, Jan 12, 2013
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  2. Marc

    Marc Administrator Staff Member Admin

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    You may need to evidence that you have some method of repayment vehicle in place, e.g. Endowment policy, cash, or other collateral. I imagine some lenders will be stricter than others
     
    Marc, Jan 12, 2013
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  3. matchstick

    matchstick Member

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    As Tomfun says,Endowment Policy,ISA or an insurance policy will be needed,or opened to the value of the property.
     
    matchstick, Jan 12, 2013
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  4. BobT

    BobT Well-Known Member

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    Or someone to guarantee your outstanding amount.
     
    BobT, Jan 12, 2013
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  5. Christchurchtyke

    Christchurchtyke Active Member

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    I have held a succession of interest only mortgages, including my current one.

    When I took this one out the building society/bank accepted my personal pension plan. At no point was this plan officially secured to the mortgage, it was simply comfort to the bank that I had a vehicle that could repay the capital of the mortgage.
     
    Christchurchtyke, Jan 12, 2013
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  6. Lee

    Lee140983 New Member

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    Hi mate, I'm a mortgage adviser. If you speak to your lender first, they may be able to do it for a short period of time - they will do this to help with cash flow emergencies etc, as its better than someone starting to miss payments.

    As others have said, if you want to remortgage and switch onto an interest only product, there has to be a viable way of getting the balance cleared at the end.

    Cheers
     
    Lee140983, Jan 12, 2013
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