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can i change my mortgage to interest only?

Last post Fri, Dec 12 2008, 1:31 PM by affinity. 6 replies.
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  •  Fri, Dec 12 2008, 1:31 PM

    Re: can i change my mortgage to interest only?

    Most lenders add an administrative fee when making any changes........... this is not uncommon.

    As I have said by changing to interest only will be an approx saving of £80.00 per months

    • Post Points: 5
  •  Fri, Dec 12 2008, 12:51 PM

    Re: can i change my mortgage to interest only?

    When I contacted my mortgage company about doing the oposite. Switching from interest only to repayment.. They said I would have to pay a £70 product fee and the same again if I wanted to switch back but would stay on the same product. Give your mortage company a call as I guess they are all different.

    • Post Points: 20
  •  Thu, Dec 11 2008, 11:59 PM

    Re: can i change my mortgage to interest only?

    Based on the figues you have given 6.19% 40% interest only, 60% repayment.......to change to 100% interest only you would only be saving yourself approx £80.00 per month

    • Post Points: 5
  •  Wed, Dec 10 2008, 9:54 PM

    Re: can i change my mortgage to interest only?

    Contact your lender and discuss with them, they are the only ones who can tell you if it can be done within their criteria. In current climates, it may depend on your mortgage loan amount, against, the value of the property and there may be an admin charge.
    • Post Points: 20
  •  Wed, Dec 10 2008, 9:40 PM

    Re: can i change my mortgage to interest only?

    Our term is over 30 years - we are repaying interest only on £60,000 and paying capital and interest on £120,000

    • Post Points: 20
  •  Wed, Dec 10 2008, 9:31 PM

    Re: can i change my mortgage to interest only?

    When problems arise, many mortgage companies will indeed settle for just the interest being paid. It's difficult to predict the response though as you've not yet completed the first 6 months of the term.

    Normally the capital part of the mortgage payment is smaller than 60% so I would guess that your mortgage is over a shorter term than most.

    • Post Points: 20
  •  Wed, Dec 10 2008, 8:59 PM

    can i change my mortgage to interest only?

    I remortgaged in August 2008 with First Active - 40% of the mortgage was interest only and 60% capital/interest. My Husband has just been offered a new job which will mean a drop in wages for the next few months until he has trained would I be able to contact First Active and change my mortgage to 100% interest only. It is fixed rate at 6.19% for two years. After the first few months he will be coming out with more than he earns now.

    Just need some advice before I apporach them

    • Post Points: 35