ECB tracker mortgage, want to move to interest only

D

darrend

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Hi

I took out a ECB tracker interest only mortgage 3 years ago for a investment property. The loan type was interest only on our mortage agreement.

I decided last year to pay off some of the captial and I was told by the bank to put this in writing, that I would like include capital in the monthly payments.

Last few weeks I have been trying ask the bank to switch it back to interest only again, But have been told that the property does not meet there loan to value aand they can not proceed with my request.

Can they do this? even though I have a interest only loan type? when I requested to include the captial does that mean i can never switch back to interest only? I would of thought that I would have to agree a new loan type for this on the mortgage.

Leagally I am wondering can I challange this?
 
Has your mortgage agreement changed? (i.e. did they send you a new mortgage agreement when you switched to capital and interest?)

Did they send you anything in writing about the permanency of the change?

Does your original mortgage agreement have any conditions about maintaining a specific LTV?

erm, can't think of any more. If you answer No to all those questions, I don't see why you can't revert to the original contract. But then I'm not a lawyer!
 
I will have a look through the T&C's for any specific relating to this, never had any new agreement from them for me to sign or anything though
 
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