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Advice - Switching from Repayment to Interest only temporarily

Last post Sun, Aug 26 2012, 12:13 AM by shaz4. 5 replies.
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  •  Sun, Aug 26 2012, 12:13 AM

    Re: Advice - Switching from Repayment to Interest only temporarily

    Ok thanks for your advice Zeb, I already have a consent to lease and renting it out so I suppose I have no further options?
    • Post Points: 5
  •  Sun, Aug 26 2012, 12:04 AM

    Re: Advice - Switching from Repayment to Interest only temporarily

    Unless they signed it over into your own name then no as your parents could change their mind or their circumstances change at any time.

    Could you rent the property out for 6 months, a year or how ever long your course would be. You would need to get whats called a "Consent to Lease" from Halifax but it would mean that you could then legally lease out your property and gain rental for it to cover your mortgage costs

    • Post Points: 20
  •  Sat, Aug 25 2012, 7:22 PM

    Re: Advice - Switching from Repayment to Interest only temporarily

    Hi Zeb.

    Thanks for your advice. Unfortunately, the course is based in the Republic of Ireland so your suggestion is not possible.

    Do you require a re-assessment of your finances even if you are increasing the term ? I wouldnt have thought this was necessary?

    With regards to the authorised repayment vehicle, would a parents house (not mortgaged) be a possible security?

    thanks
    Shahram
    • Post Points: 20
  •  Sat, Aug 25 2012, 7:12 PM

    Re: Advice - Switching from Repayment to Interest only temporarily

    If your house is close to where you may study, could you not take on lodgers to help pay the mortgage costs? You might even make some pocket money in the bargain....at the loss of some privacy
    • Post Points: 5
  •  Sat, Aug 25 2012, 7:11 PM

    Re: Advice - Switching from Repayment to Interest only temporarily

    Which ever move you make will require a reassessment of finances and if it shows that you are to give up your employment and income the the natural question is going to be "how will you pay the mortghage even on interest only?"

    The other [roblem with halifax is that for a switch to Interest Only they would now be looknig for you to have a repayment vehicle in place already such as an endowment or existing pension plan, solid equitable investments to the value iof the mortgage or another property that could be solkd in place to the value of the mortgage outstanding. ity is this later part of the criteria that i think you may fall down on as they will not take the promise of a return to repayment or assurances of future income as suitable repayment vehicles. They want to see somethuing tangable right now

    • Post Points: 20
  •  Sat, Aug 25 2012, 6:54 PM

    Advice - Switching from Repayment to Interest only temporarily

    Hi All

    I was wondering if I could have some advice on my mortgage please.

    I currently have a 30 year mortgage with Halifax (repayment) for a shared equity scheme (I pay the mortgage for 75 % of value of property and will have to buy / mortgage the rest in another 5 years time). I have had the mortgage for 5 years already with the fixed rate term finishing 2 years ago. I have been on the SVR since.

    I have recently accepted an offer to study Medicine (im only 28 yrs old) on a Graduate Fast Track scheme, where I will be earning as a Junior doctor after the 4 year course is complete. Further, I have had to resign from my job which I have held for 2 years.

    I am wondering if Halifax will let me switch to an Interest only mortgage for the next 4 years (or part of if not all), with a view of moving back to interest and capital repayment after this period, where I will be a fully registered Doctor in the NHS. The other option I was considering was increasing the term to the maximum possible for someone of my age (40 or 45 years?) and continue to pay interest and capital if they are not willing to move to interest only temporarily as I understand that approved saving / invesment sources are required nowadays if requesting interest only.

    My question is, if I am only looking to move to interest only temporarily, and my course has a 100% employment rate in a profession such as medicine, could I request they move me on to interest only on the basis that I will repay the capital through additional voluntary contributions once I am earning again?

    The property is currently rented out under a consent to lease.

    Any advice on how I can best manage my mortgage during my studies will be very much appreciated.

    Regards
    Shaz84
    • Post Points: 20