Hi am currently on my third year of a TD like most struggling with payments because of covid my question can I change my mortgage to interest only thanks.
Mery
Welcome to the forum Youjoe.
You can change your mortgage to interest only if the mortgage lender is happy for that to happen.
You should promptly inform your trustee if this happens. Your trust deed payment is based upon affordability, so a reduced bill could potentially lead to an increased trust deed payment.
Have you suffered a reduction in income as a result of the pandemic? If that's the case then switching your mortgage to interest only might not be the only solution to help you get by.
Thanks TDA for your reply my mortgage company refused to switch my mortgage to interest only they offered me 12 months interest only but my balance will go up from 65000 to 83000 after one year.
Yes my income has been affected from covid what other help is out there for me.
Mery
Hi Youjoe,
I'm a bit confused about why switching to interest-only would see your mortgage balance increasing. If you're paying the interest the balance owed should remain the same.
Might they be talking about a total payment holiday instead?
You should talk to your trustee if your income has reduced. Your monthly payment should be based upon affordability, so a temporary reduction in your payment (or the payment being put on hold altogether) chould be the outcome if no payment is affordable based upon your current income and expenditure.
Do you think it likely that your income will recover in the coming months?