Posted on 8 February 2011 by Dave
Repayment to Interest Only switch ??? Decline.
In 2007 I borrowed £374k on an Interest Only basis with no repayment vehicle. Since the I have reduced the balanced to £214k and been paying on a repayment basis. Recently I lost my job and secured another however on a much reduced income. The repayment scheme leaves me with no disposable income at all. BM granted me a 3 month window on I.O but now want the full capital repayment amount and will not allow me to return to the original IO offer with no repayment vehicle. It is a 50% LTV at worst and my house is presently for sale. Are there any lenders that will provide interest only with no repayment vehicle?
Interest only mortgages have been the subject of much discussion after coming under the spotlight of the Financial Services Authority and Lenders have cut back on what they accept as repayment vehicles. Fortunately there are still a few who will accept the sale of the mortgaged property and with an LTV of around 50% I imagine there should be no problem obtaining the mortgage you require, subject to meeting the rest of their criteria.
I believe you would benefit from speaking to one of our independent mortgage advisers. If you call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.
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