I was trying to edit my post but it won't let me.....

Just did a quick check on RBS website - if we go onto a repayment mortgage now our payments would increase to over £700 so that's out of the question!

Hi Pam.

Sorry about the problem with the edit, there is a quirk on this particular forum that makes the first post on a new thread tough to edit.

There is a general change in the mortgage environment in connection to interest only mortgages. It's clear that the majority of people with interest only mortgages have not set up alternative schemes to be able to repay the capital when the mortgage term expires. Essentially, this is building up a massive problem for the future when many thousands of people are likely to have to leave their homes in which they'd hoped to live during retirement.

Mortgage lenders are unlikely to offer an interest only mortgage now unless you can prove that there is a workable plan ready to clear the capital later. For obvious reasons, that's unlikely to be possible during a trust deed.

It's also extremely difficult to get a new mortgage during a trust deed, and where it is possible the interest rate is often likely to be very high.

I can understand where your trustee is coming from. It does seem a little unfair to creditors that a switch to a repayment mortgage (that will reduce the amount they are paid) happens once a trust deed is set-up when prior to that you had elected to use an interest only mortgage.

RBS are quite likely to offer you replacement mortgage "deals". They're unlikely to credit check you if you want to use one of these as their risk hasn't changed (unless you want to extend the borrowing of course). You can choose between these, or just move onto the RBS standard variable rate.

For commercial reasons they may not offer new "deals". In that case, assuming you have "term" remaining on your mortgage (for example it's a 25 year mortgage, even though the fixed rate was just for 3 years), your mortgage will move onto the SVR.

Is the mortgage adviser based within RBS?

Thanks TDA. Yes, the mortgage advisor appointment is with RBS. When I did a quick online mortgage deal checker on RBS' website, I chose a repayment mortgage and the monthly payments were approx £715. When I changed this to Interest Only - lo and behold, there were no deals!

Is that function for new clients rather than those with expiring RBS "deals" Pam?

Both but the one I used was for existing customers - options are to look for a new deal, remortgage, borrow more money etc so I opted for "new deal".

Hopefully the adviser can make everything clear next week Pam.

I can see where you are coming from pammy1969 - let sleeping dogs lie and all that. Is there a big difference between the deals that may or may not be available to you and the SVR? Remember there are usually charges attached to fixed rate deals. If the benefit is marginal then you may prefer not to take the risk of trying to get onto a new deal, being credit scored and RBS potentially looking to switch you onto repayment terms.

However, I must admit that I have no idea whether this is likely to happen or not

Hi Kevin, thanks for your reply. The deal we're on just now is fixed at 3.39% and RBS's SVR is 4% so I think we'll sit tight and let the deal come to a natural end. I'm going to cancel tomorrow's meeting with the mortgage advisor as I can't be trusted to keep my mouth shut and walk away without ending up being talked into something I don't want.

I have a motto which I frequently apply to life - if in doubt, do nowt. The lazy person's motto!!

Very good. You've got me thinking of other mottos now, Pam.

If in need, trust deed. If too late, sequestrate!

Pay it in 10? It's DAS then.

Sorry, I'll get my jacket

Mark

Perhaps you could pick up Kevin's jacket for him while you're at it Mark?

If you don't have the cash, just pass.....

[:p]

Oh dear Neverendingstory!!