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ummmm | 14:48 Sun 21st Jan 2007 | Personal Finance
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How easy is it to swap from a repayment mortgage to an interest only?

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Avatar Image STAH
It should be relatively straight forward.

However, your lender will want to know the source of repayment at the end of the term. They will not switch your mortgage to interest only without knowing this. For example, if your are due a legacy of �50,000 from your Aunt Ethel, then they would want to see the Will to prove this aswell as the existance of the funds (whether it be in a deposit account, portfolio of shares, or property).

Hope this makes sense to you.
18:42 Sun 21st Jan 2007
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Like taking out an endowment policy?
18:59 Sun 21st Jan 2007
Avatar Image STAH
Exactly. Endowment mortgages are essentially interest only mortgages where the maturing endowment policy would be the source of repayment at the end of the mortgage.
18:35 Mon 22nd Jan 2007
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Thank you very much for your help
19:18 Mon 22nd Jan 2007
Avatar Image boro1986
Why would you wanna change hun. At the end of the interest only you still have to pay all the money back
10:21 Tue 23rd Jan 2007

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