Moving on to an Interest Only Mortgage
Posted on 27 July 2011 by Robert
I currently have a fixed rate mortgage that ends in October, I would like to be able to move on to an interest only mortgage for one year, as I am going to be setting up my own business and need the extra money. Would this be possible to achieve? Thanks.
It may be possible to amend your repayment method with your existing Lender and they should be your first port of call. If they agree, you can expect to pay a small fee payable to cover their administration costs.
In the event that your existing lender does not agree to your request, it may be possible to remortgage to another lender on an interest only basis. You will need to have a repayment plan in place for the eventual redemption of the mortgage, but there are a few lenders who will allow you to use the sale of the property.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to offer further advice on your situation.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.