Interest only mortgage endowment

[icap9912]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by luna

Hi,

Not sure if this helps but we have just sorted out the interest-only element of our mortgage in this way;

Prior to submitting our proposals we had to get an assurance from our mortgage provider that we would not have to repay the int-only bit on the expiry of the term which was during our IVA.
We had no problem with this and our provider actually gave us in writing the option to extend the term of our mortgage up to our retirement ages withn the option to reduce the term again as and when required.
What this has enabled us to do is shift the int-only to repayment and reduce our overall martgage payment considerably.
We get to keep half of this reduction which is shown on our I&E as net surplus.
Obviously our return to creditors goes up but so does our overall allowance.
No exact figures were on our proposals so we remain in control.
When our IVA's are over we will reduce the terms back.

I don't recall seeing this option mentioned on here and it might not benefit anyone else but due to the number of posters who struggle it might be an option to explore for someone else.

Regards.

Hi

That might be a road for me to look down if it goes pear shaped, thanks for the info.

[TigerTiger]

Icap, intended sale of the property used to be accepted as provision for the capital repayment , but not now. Assigning a private pension is possible, but it's only the lump sum, tax free element which can be used. Obviously, in any event that would mean making payments to the pension to build up the right level of fund and would still leave you with increased expenditure.It's clear you've not been left with an easy decision. May I ask what stage you've reached in the process ? If it's not too late you could explain all to the Halifax and ask what they can do for you. The worst that could happen is that you would remain on your present interest only deal but at the reversionary rate - which would be much easier to assimilate than being found out down the line and forced on to a repayment mortgage. I'm assuming your current deal must have been acceptable in terms of the repayment proposal when you took it up.

[icap9912]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by TigerTiger

Icap, intended sale of the property used to be accepted as provision for the capital repayment , but not now. Assigning a private pension is possible, but it's only the lump sum, tax free element which can be used. Obviously, in any event that would mean making payments to the pension to build up the right level of fund and would still leave you with increased expenditure.It's clear you've not been left with an easy decision. May I ask what stage you've reached in the process ? If it's not too late you could explain all to the Halifax and ask what they can do for you. The worst that could happen is that you would remain on your present interest only deal but at the reversionary rate - which would be much easier to assimilate than being found out down the line and forced on to a repayment mortgage. I'm assuming your current deal must have been acceptable in terms of the repayment proposal when you took it up.

My current deal works out £100 per month better off when it starts so im better off by £50 after the 50/50 rule, but i see your point about asking the Halifax about my situation, it was just a pleasant surprise when it was sorted with no problems as i was expecting to get put on the SVR repayment after reading how difficult it is to get mortgage deals.
Im sure the Halifax will help as i have never missed a payment and am able to continue with the same payment as before.
ive got 19 yrs left and 41 years old so i suppose i could ask to increase the term to 25 years or even see what they can do for the next 4 years atleast.
Thanks for the advice.[;)]