Mortgage query

[tim0409]

Hi there

I would be grateful for some thoughts on my current mortgage situation -

In 2008/9 I bought land and built a house with a self build mortgage which was later converted into a LloydsTSB interest only mortgage at 4.29%. Our rationale at the time was that we would sell the house in the next year or so and repay the loan. We have now decided to keep it for a further 2 years (I have a job which ties me to the area) and approached TSB re moving to a fixed repayment mortgage over 2 years. They had a desktop valuation of £396k (mortgage is £300k) which I queried and after a re-valuation has come in at £435k. I am due to a phone call on Wednesday to go through the affordability process but last week had a look at my account online and one of the switching options is to continue on interest only at 2.34% for 2 years with no fees. The paper work arrived for this today and there is no mention of having to provide a repayment vehicle (which we don't have as we were going to sell). This product would be ideal and halve our monthly payments and allow us to start a repayment (isa or similar) but from the criteria on their website I think we would require an existing plan with a substantial balance accrued. The other option is to move to fixed repayment mortgage at £1350 a month although the product fee is £1500. I suspect they will push us into this even though it's not the best option for us. I am tempted to sign the forms for the interest only deal and send them off and see what happens...

Any thoughts....

[Evil Monkey]

I no longer work for TSB but if you're on Interest-Only now and are just switching products, i.e. no additional borrowing being taken, then they should allow this without you providing evidence of a repayment vehicle. Obviously it's recommended that you do have one!

[tim0409]

Evil Monkey said:

I no longer work for TSB but if you're on Interest-Only now and are just switching products, i.e. no additional borrowing being taken, then they should allow this without you providing evidence of a repayment vehicle. Obviously it's recommended that you do have one!

Many thanks - TSB have just switched our product, all that was required was signing a declaration of intent (we are either going to overpay or use an ISA).

[SDB68]

Hi
I am in same situation...can you share how you entered information on declaration of intent....what boxes you filled in and what you left blank.
Thanks

[tim0409]

SDB68 said:

Hi
I am in same situation...can you share how you entered information on declaration of intent....what boxes you filled in and what you left blank.
Thanks

Hi

From what I gather because our mortgage predates 2011 they weren't really that bothered about what repayment vehicle we had, and that the criteria they use for new IO mortgages re ISA did not apply, so before I filled out the form I opened an ISA and then truthfully ticked that box.