Interest only mortgage

[ASB]

Finally got round to calling Nationwide, the guy on the phone told me we would need at least £150k equity in the property to be considered. Our house is worth £170k so by my calculations that's an LTV of about 12%, why on earth would I want to switch to IO if I only had a mortgage of £20k???

We have an LTV of 59% which I thought was bloody good, god help the masses when the tulip really hits the fan.

Do your sums to work out if it's worth switcihng to somebody else. I have just signed up for First Direct at Base + 2.39 (ouch but it's the best I can do). It's an LTV of just under 75%. 75% is the max.

Basic problem #1: Nationwide don't do interest only. (As you have discovered this they will consider it under certain circumstances).

Basic problem #2: you will have to get through the underwriting state and loads of people are bloody strict. With an LTV of < 60% Woolwich have a variety of deals with a loadend front end rate for a 2 year term (depending on arrangement fee) and base + 1.49 for life. Though this is likely to be more expensive than your current Nationwide mortgage.

Instead of trying to get Nationwide to switch it to interest only can't you ask them to extend the term?

[gingerjedi]

We've still got 18 months on quite a good tracker deal so we'll be sticking with that by the looks of it, just thought that IO would free up some cash for a bit seeing as rates are so poor etc etc.

Now I've had first hand experience of just how tight lenders are being I predict a blood bath on a biblical scale, it's going to be Armageddon out there when all those poor permies redundancy payments run out and the harsh reality kicks in.

Rates may be bad at the moment but the IT market is big and diverse so I expect to get something at some point to at least tide me over, I can’t imagine for one minute that would be the same for an ash tray fitter from the Honda plant.

[BrilloPad]

I am interest only : capital will be paid off by a business deal.

It does not affect my credit rating atall.