can i change my existing mortage to interest only and borrow more money to pay my ex wife out of mortgage?
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shannon
1 year ago
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Normally you can, but you will need to speak to your lender directly and ask if this can be done, as not all will allow it. It all depends what your loan to value is on the house, etc
Your lender should be very helpful
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Your lender should be very helpful
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
most lenders have a limit for interest only at 75% of their appraised value of your home. some also apply an additional rule that you must have at least £150000 equity!
many lenders now will only accept capital & interest (repayment) as too many borrowers never got round to starting a repayment vehicle/investment.
if your current lender wont assist, another might, so it could be in your interest to speak with an IFA so that you can remortgage to a new lender on the new higher loan amount - as long as you havent got an onerous penalty on your existing account.
Paul is right in that your current lender would be the first port of call but you might no longer fit their profile of a "good borrower" simply because they have changed their approach to lending - not a reflection on you at all!
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many lenders now will only accept capital & interest (repayment) as too many borrowers never got round to starting a repayment vehicle/investment.
if your current lender wont assist, another might, so it could be in your interest to speak with an IFA so that you can remortgage to a new lender on the new higher loan amount - as long as you havent got an onerous penalty on your existing account.
Paul is right in that your current lender would be the first port of call but you might no longer fit their profile of a "good borrower" simply because they have changed their approach to lending - not a reflection on you at all!