# interest only mortgage



## funny face (10 Feb 2011)

my husband died suddenly 7 weeks ago and need to turn my mortgage into an interest only mortgage but i am getting the run around for the building society can suggestions


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## lionstour (10 Feb 2011)

My sympathies.  But was there not mortgage insurance that would cover the payment of the mortgage on the event of his death?


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## wbbs (10 Feb 2011)

Insurance can take some time to pay out, meanwhile the mortgage goes on. 

In what way are the bank not helping you?  what reason are they giving for not putting you onto interest only immediately?

Will you be able to pay interest only payments if you get them, have you paid whatever payments have been due since your husbands death (my sympathies on your loss).

Bank are probably concerned that payments of some sort would not be made as the insurance if there is some usually pays out what is owing at date of death so it is possible that if the mortgage remains unpaid the amount owing will be more than the payout.  Not saying this is the case but just trying to see what the banks difficulty is in this case.


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## funny face (11 Feb 2011)

never had late payment, mortgage paid up to date, told me over two weeks ago would turn it into interest only but now saying i need more paper work but so far have not received anything in the post


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## wbbs (11 Feb 2011)

There would be a form to be signed to vary the terms, best advice is ring them, see what the delay in sending it out is.   Ask for the Manager, that might make them speed it up, things are tough enough for you without that hassle.


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## manns (12 Feb 2011)

Real sorry to hear. I tried to keep my interest only going with ACCBank a couple of months ago but they refused. They told me I had to pay interest and capital. I cant afford that so I pleaded with them. No good. No reason why given. I struggling. I think in your circumstances, the Bank should be sympathetic though. You may need to escalate it to their headoffice or get on the Joe Duffy show. I wish you the best.


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## Brendan Burgess (12 Feb 2011)

manns said:


> Real sorry to hear. I tried to keep my interest only going with ACCBank a couple of months ago but they refused. They told me I had to pay interest and capital. I cant afford that so I pleaded with them. No good. No reason why given. I struggling. I think in your circumstances, the Bank should be sympathetic though. You may need to escalate it to their headoffice or get on the Joe Duffy show. I wish you the best.



Check out the Central Bank's Mortgage Arrears Code just published yesterday and you can find out how to appeal this decision. 

Brendan


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## manns (12 Feb 2011)

Thanks, will do. Didnt know that people were having any success from this process though. Have you heard otherwise.


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## Brendan Burgess (12 Feb 2011)

Most people who ask for an arrangement get it. The banks are being very flexible.

The revised code is very recent, so not many will have gone through the appeals process yet. I don't think that there will be that many appeals.

Brendan


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## manns (13 Feb 2011)

Thats good. Thanks for the reply.
Funny Face, can you tell us which bank you're dealing with? Will be interesting to see the trends over the next couple of months. Wouldnt it be great if some how, the askaboutmoney site could trend whats happening in the banks, what banks are most flexible, least flexible, what banks are bringing clients to court and how many, wins / loss in the courts. It would really make for great reading and would hopefully help all those having problems. What do you think? Its just a thought.


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## Brendan Burgess (13 Feb 2011)

Hi manns

I have done it before in this Key Post

http://www.askaboutmoney.com/showthread.php?t=134128

Contrary to the public perception, the banks are being very flexible.

Brendan


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## manns (14 Feb 2011)

No problem and thanks again for your help.


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## Capricorn 1 (18 Feb 2011)

Does the new Mortgage Arrears Code apply to investment properties?


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