Interest only mortgage help

[tastyjane]

Hi

We have an interest only mortgage with BOS; we need to repay it in 8 years and we do not have a repayment vehicle... The plan is that my credit history should be all sorted then and as I am now back in full time employment I should be able to get a mortgage on my salary alone (husband is self employed) - the problem is they are chasing us to provide evidence of a repayment vehicle now - I am worried that if we try and get it changed into a repayment at this time we will fail due to my bad history still showing (not long to go now till the last default falls off in Mid May but I do have a CCJ that is only 2.5 years so 3.5 years to go before that disappears) and then what will happen? will they force us to sell? I think we have a little equity in the property now as things are picking up here (probably around 80% LTV).


My question is can they force this - at the moment I am taking the default stance of burying my head in the sand and ignoring them.....

Jane x

[PlanB]

Re: Interest only mortgage help

We have an interest only mortgage with BOS; we need to repay it in 8 years and we do not have a repayment vehicle

. . . . the problem is they are chasing us to provide evidence of a repayment vehicle now

. . . . My question is can they force this

My answer is No they can't. They can mind their own bloody business as to how you will pay back the loan in eight years time and not a second before. The day your loan expires is the day they'll get their answer.

Lenders have started to nag people now because they're panicking at having lent interest only mortgages without checking the borrower's exit strategy. There's usually a question on the mortgage application form which asks how you intend to pay back the loan at the end of the term. I always put "from the sale of the property". It's tempting to add "or from a lottery win"

They can't touch you for the next eight years unless you get into mortgage arrears. You've signed a legally binding contract to pay interest only and that's that. It's safe to ignore their request for evidence of a repayment vehicle now.

Quite frankly I've no idea what I'll be doing next week let alone in 8 years time, so why should you.

Plan B x