Can I reduce interest rate and pay interest only on vacant property that's on the market?

A

Acorn22

Registered User
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170
Hi,

I'm trying to sell a property but with restrictions and no end in sight I was looking at paying interest only and reducing my current interest rate. I have two mortgages now and would like to reduce my costs. It could be next Autumn/winter by the time contracts are signed etc.

The property is with UB and interest rate is 3.1% which is high.

Thanks

K
 
kingvagabond said:
The property is with UB and interest rate is 3.1% which is high.
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It'd not high for a property that isn't your PPR.
You could ask them to go interest only if you've cashflow issues, but I'd be wary asking for a lower rate if you're not living in the house.
 
Thanks red onion. Why would you be wary looking for a lower rate? Is it because the lower rates are for PPRs only? Also would it affect my credit rating?
 
kingvagabond said:
Why would you be wary looking for a lower rate?
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Presumably this was your PPR when you took out the mortgage and you later moved and rented it out? You'd have got a PPR rate at that time, it's now a BTL, Ulster's BTL rates are around 4.5% - 5.5% so not a good idea to let them know its no longer your PPR
 
I see what you are saying. Does it affect your credit rating if you go interest only?
 
I have the loyalty variable rate at the moment that is linked to our UB current account. With them (UB) pulling out should i move my current account and switch to a 2 year fixed rate (paying approximate e708) per month or stick with loyalty rate at e759. The house is on the market waiting to be so but with all the uncertainty around the virus and possible more variants I'm looking to explore options. Surely it isn't that costly to break out of a fixed rate should I need to do so this year.
 
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