Can I re- mortgage

[Skippy]

I agree with Jan. If the poster is going to have increased payments as it is there is no point switching to a repayment mortgage.

A repayment mortgage is nice, but as I know it's not always possible.

[RHB]

When I applied for my mortgage the bank wanted to know how it would be paid off in the end. An interest only mortgage ususally requires an endowment to run alongside. If you have the choice, obviously interest only is cheaper.

[kallis3]

I used to have interest only, with an endowment, but then the bottom fell out of the endowment market I would have been left with a £30,000 deficit - not a good thing to have at the end of your mortgage!

I changed to repayment, and ok, my payments went up but I have no worries about how I am going to pay it off at the end.

But if you are strapped for cash and already on interest only, then I advise staying on that for the time being - you can always change back when your finances are straighter.

[Skippy]

That's what we're planning on doing. Hopefully if interest rates stay low we might be able to do it in October, but we'll have to wait and see. My IPA finishes in May 2010, so I'll have nearly £200 extra a month so it depends on how much other things have increased by.

Another reason for us staying on interest only is that Dave is self employed and it depends on what happens with his work.

BTW, we were never told we had to have an endowment. We had to show that we had an ISA in place, but that was all. Ironically there was nothing in it, but they were happy with that.

[kallis3]

Mine was originally taken out in 1989 at the height of the endowment boom - we were promised so much - it was going to pay the mortgage in full and give us a good lump sum as well!

I think we had to take it out, but of course things have changed since then.

[MelanieGiles]

I've got three of those policies, all taken out in 1991 on the advice of our mortgage broker, and it makes me feel sick when I see the now projected values compared to the promises of riches we were made at the time!

[kallis3]

Know just what you mean Melanie - they were going to do so much!

We cashed ours in when we changed to repayment and it got us a new fire and fireplace!

[David Mond]

Did not any of you make any claim for a potential mis-sold endowmnent and/or wrong advice given to you at the relevant time?

[kallis3]

No, we had already sold ours by the time people were able to claim, so I have no paperwork relating to it anyway. Ours was done through the mortgage broker we used, who probably don't exist anymore anyway.

[David Mond]

But there was a scheme that you would be able to claim from set up by the FSA

[kallis3]

I really have no idea how we would prove it was missold or we were given the wrong advice after all this time.

[Welsh Boy]

Kallis3

When the product(s) were recommended as being the best advice for you, the adviser would have provided you with a "Reasons Why Letter".

This would explain fully the reasons why you were advised that the product was suitable for you. That is usually a good starting point as a refresher so you can understand your circumstances at the time, you will then be able to ascertain the advice offered against your requirements at the time.Tony

[kallis3]

Hi Tony,

Thanks for that. I shall have to check in mortgage papers which are filed away to see if there is anything in there. It's been 20 years so I shall have to blow away a little dust!

[RHB]

We never had that letter!

I do remember questioning why anyone would do a repayment mortgage though at the time.

[kallis3]

I'm not sure if we did, but as I say, it was 20 years ago so I really can't remember.

I think everyone did interest only in those days - it was the promise of all that money at the end of the mortgage!