Interest only Mortgage

R

Ronaldinho

Guest
I'm thinking of ringing my bank and asking for a 6 month spell of paying my mortgage interest only. I was wondering if ye think they will do this and will it affect my credit rating in the future? Thanks guys.
 
Can you provide a little more information? Is the mortgage up to date? or have you missed payments? are you in financial difficulty? Why are you looking for an interest only period? how long have you had the mortgage? are you in negative equity?
 
Sorry - Yea the mortgage is up to date and I never missed a payment. I'm not in financial difficulty as such but am living week to week because of loans and credit cards and would like to pay of credit cards as soon as possible.I owe about 185,000 on the mortgage and the house is worth around 170,000 - 180,000 with the term remaining at around 31 years.
 
Write to your bank requesting the facility. In your letter detail briefly why you are looking to go interest only and justifications for it etc.

Your bank may send you out a specific form to fill out as well as a detailed form showing your earnings and expenditure etc.
 
Thanks rustbucket. Will this go against my credit rating in the future?
 
Ronaldinho this sounds like a good idea however your payments will increase after your interest only period so you may end up still living week to week. Might be a better idea to look at your other debts.
Contact the bank and ask them to give you an idea what your new repayment would be after the interest only period.
On your credit rating - I'm not sure but maybe check with the ICB themselves.
 
Thanks iscritto. Yea I plan to contact the bank and sure it wont hurt to ask in anycase! The last thing I want to do is affect my credit rating for any future loans/mortgages I might need. Would anyone else know if it affects my credit rating?
 
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