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By (user no longer on site)
over a year ago
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"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward. "
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off. |
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By (user no longer on site) OP
over a year ago
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"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off."
it’s only a temp measure |
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By *ugby 123Couple
over a year ago
Forum Mod O o O oo |
"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off."
We have a friend who is using it as a pension, the house is worth a lot more than there interest only mortgage so they are banking on selling up in a few years and paying the mortgage off that way. Bit risky if there is not a lot of equity though |
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By *oxy_minxWoman
over a year ago
Scotland - Aberdeen |
Personally I wouldn't, as you wont save that much! And I used to have an endowment mortgage when I was originally sold it at age 20.
I moved onto a repayment 10 years ago but kept on my endowment policy, so I will still get a return, however, it will be worth half of what I was promised.
I honestly would not look at that as an option to try and save money. |
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By (user no longer on site)
over a year ago
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"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off.
We have a friend who is using it as a pension, the house is worth a lot more than there interest only mortgage so they are banking on selling up in a few years and paying the mortgage off that way. Bit risky if there is not a lot of equity though"
true, and the housing market can go either way, specially with Brexit on the horizon, i had an endowment mortgage about 20 years ago, changed it once i realised i may have a shortfall when it comes to maturity and wouldn’t have enough to pay the capital. |
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I have one on one of my flats I rent out and it works quite well for that, I pay the extra rent money into paying it off above my monthly payments.
If you have not changed your mortgage for a while you would reduce your payments better by just changing your mortgage company.
I think banks are trying to stop people getting them these days anyway, certainly making it harder to get them. |
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By (user no longer on site) OP
over a year ago
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it’s only a temporary measure. My current mortgage is for £66k. Value of Property circa £80 -£85k. I am
Only doing this as a temporary measure to pay of some
Existing debt. And no
I can’t realise equity (before anyone asks). |
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By (user no longer on site) OP
over a year ago
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"I have one on one of my flats I rent out and it works quite well for that, I pay the extra rent money into paying it off above my monthly payments.
If you have not changed your mortgage for a while you would reduce your payments better by just changing your mortgage company.
I think banks are trying to stop people getting them these days anyway, certainly making it harder to get them."
I Defo
Think
It’s more difficult
To
Get them
|
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"It lowers your payments but won't pay the mortgage off I know that. But it’s only a temp measure for a few years "
Sure but lenders still need the assurance that their loans are secured and will be repaid - which an endowment type policy would achieve. If you'd expect them to accept you reducing your payments by not paying them any capital repayments for a temporary period, they'd still want a guarantee that they will be repaid the capital amount, in addition to the interest being charged on it. |
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By (user no longer on site) OP
over a year ago
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"It lowers your payments but won't pay the mortgage off I know that. But it’s only a temp measure for a few years
Sure but lenders still need the assurance that their loans are secured and will be repaid - which an endowment type policy would achieve. If you'd expect them to accept you reducing your payments by not paying them any capital repayments for a temporary period, they'd still want a guarantee that they will be repaid the capital amount, in addition to the interest being charged on it."
Thanks. It may not be worth the hassle for a few years then. |
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By *oxy_minxWoman
over a year ago
Scotland - Aberdeen |
"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off.
We have a friend who is using it as a pension, the house is worth a lot more than there interest only mortgage so they are banking on selling up in a few years and paying the mortgage off that way. Bit risky if there is not a lot of equity though"
I definitely would not risk this, you never know what is round the corner that will knock all the equity on it's head!
I may have lost up to £50k from my property due to a cowboy development (still taking legal advise) and a friend of mine, has just found out that her house is currently on the route of 1 of 3 proposed roads North of Aberdeen, so it is bloody scary that one minute you have it then the next is could all be bloody gone  |
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By (user no longer on site) OP
over a year ago
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"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off.
We have a friend who is using it as a pension, the house is worth a lot more than there interest only mortgage so they are banking on selling up in a few years and paying the mortgage off that way. Bit risky if there is not a lot of equity though
I definitely would not risk this, you never know what is round the corner that will knock all the equity on it's head!
I may have lost up to £50k from my property due to a cowboy development (still taking legal advise) and a friend of mine, has just found out that her house is currently on the route of 1 of 3 proposed roads North of Aberdeen, so it is bloody scary that one minute you have it then the next is could all be bloody gone "
I agree. But my property is only valued at approx £82k. With mortgage left of approx £65k. It would not drop
Considerably in value |
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"I asked a specific question “Has anyone had an interest only mortgage with Santander?”"
I think you are asking the wrong question.
If you are struggling financially, you need to seek proper financial advice to look at all options and which is best for you.
Nita |
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"it’s only a temporary measure. My current mortgage is for £66k. Value of Property circa £80 -£85k. I am
Only doing this as a temporary measure to pay of some
Existing debt. And no
I can’t realise equity (before anyone asks)."
You can see if you can extend the term of the mortgage, it usually costs about £60 to arrange, that way it wil lower your monthly payments. It costs nothing to speak to them and get some numbers... |
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What may be worthwhile would be to pop in to a few high street vendors who offer mortgages and re-mortgages, so that they could inform you of the pros and cons as well as suggest options that you may not have thought about.
Certainly it would be unlikely that any lender would agree to anyone switching to an interest free mortgage, without any new form of guaranteed capital repayment device, such as an endowment.
Another option would be to get support from any money advice support services, where they may be offer to help to introduce you to other ways to manage your expenditure/debts etc, rather than remain focused on your home. I'm not aware of financial/debt support services in NI but it could be worth searching. Your number one priority in life is ensuring that your home is secure. |
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By *oxy_minxWoman
over a year ago
Scotland - Aberdeen |
"Why do you ask? Hi, I want to reduce my outgoings for a few years. So I’m
Thinking interest only mortgage maybe the way forward.
you have to take out me endowment policy to pay the capital off at the end of the mortgage term though, you may not be that much better off.
We have a friend who is using it as a pension, the house is worth a lot more than there interest only mortgage so they are banking on selling up in a few years and paying the mortgage off that way. Bit risky if there is not a lot of equity though
I definitely would not risk this, you never know what is round the corner that will knock all the equity on it's head!
I may have lost up to £50k from my property due to a cowboy development (still taking legal advise) and a friend of mine, has just found out that her house is currently on the route of 1 of 3 proposed roads North of Aberdeen, so it is bloody scary that one minute you have it then the next is could all be bloody gone I agree. But my property is only valued at approx £82k. With mortgage left of approx £65k. It would not drop
Considerably in value "
That what I thought until the cowboy development caused subsidence to my property, so if you think you are home free with no risk, I'd think again as anything can happen! |
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By (user no longer on site) OP
over a year ago
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"What may be worthwhile would be to pop in to a few high street vendors who offer mortgages and re-mortgages, so that they could inform you of the pros and cons as well as suggest options that you may not have thought about.
Certainly it would be unlikely that any lender would agree to anyone switching to an interest free mortgage, without any new form of guaranteed capital repayment device, such as an endowment.
Another option would be to get support from any money advice support services, where they may be offer to help to introduce you to other ways to manage your expenditure/debts etc, rather than remain focused on your home. I'm not aware of financial/debt support services in NI but it could be worth searching. Your number one priority in life is ensuring that your home is secure. "
you’ve been very helpful! |
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