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  • #1

    switiching form repayment to interest only

    My friend was made redundant 2 months ago and she has to wait 39 weeks before any support for mortgage interest help kicks in,she phoned her mortgage provider and has been given a 3 month holiday break also they owed her £1000 so they are taking that as repayment once the 3 months holiday is over. Even with the £1000 they owe her it will still leave her waiting about 5 months before any help starts so she phoned them again and asked if she could switch to interest only , they refused saying she could not afford it.

    Can they refuse ?

    please and thank you
    _______________________________________



    Tags: advice, arrears, debt, dwp, england, family, free, friends, help, holiday, homes, interest, lenders, miss selling, money, mortgage, mortgages, owed, payments, redundancy, refuse, repayment, repossession, scandal, selling, shelter, support, switch, thank you
  • #2
    Re: switiching form repayment to interest only

    As far as i know, they can refuse. Should they refuse is of course a moral debate.
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    • #3
      Re: switiching form repayment to interest only

      Isnt there all this thing on about it will become very difficult to get an interest free mortgage at all shortly. Thats why the lenders are all pulling them.

      Another miss selling scandal brewing.

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      • #4
        Re: switiching form repayment to interest only

        Originally posted by SXGuy View Post
        As far as i know, they can refuse. Should they refuse is of course a moral debate.
        i have heard of it many times , our mortgage provider just said yes so not sure why some don't agree.
        _______________________________________



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        • #5
          Re: switiching form repayment to interest only

          Originally posted by Flowerpower
          Ah, but this isn't a question of getting an interest only mortgage from the start, it's a measure to avoid arrears building up, leading to repossession, and lenders are supposed to take every possible step to avoid repossessing homes. Shelter recommend doing it ---> Interest-only mortgages - Shelter England

          It looks like the lender has refused on the basis they can't see how they will be able to meet their monthly payments as noted below, but I can't see how refusing to go interest-only will help!

          Maybe if they could show that she's got some redundancy money or she could get help from family and friends, etc. they will agree. They should also check the DWP decision not to pay SMI for 39 weeks!
          i dont think she got redundancy not there long enough, no family i dont see their reasoning it won' make a difference it will help but they don't want that do they so it seems
          _______________________________________



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