mortgage

[bandit]

hi all
after being forced into interest only on my mortgage whilst in my iva i would like to change to repayment now my iva has finished.
having been 6 years on interest only do i have the option of extending my mortgage term to make payments easier?
i have 24 years to retirement
thanks.

[Foggy]

Hi. I would suggest having a word with Ryan and / or Shaun. Both are whole of market brokers with experience in adverse credit applications and both have placed mortgages for ex-IVA'ers on this forum.

Their contact details can be found under the "Ask A Question" tab ( top left) and scrolling down to the Expert's Details section.

[Michael Peoples]

It is a good idea to speak to a specialist like Shaun Vickery or Ryan as they would know where to go to and where to avoid.

I suspect that you are currently NRAM and that would explain the six year IVA and the demand that you switched to interest only. It would be difficult to find another interest only product so it may depend on what rate you are on at the moment as to whether to stay or move. If you have an excellent tracker deal you could just make overpayments each month but if you are on the NRAM standard variable rate there may well be better deals out there. This plus an extension of the term may actually not affect your payments much at all.

[bandit]

Thanks for the advice.
I wondered if an extension is an option with NRAM as I'm in negative equity

[Andy.75]

Have a read at my last post. I was in exactly the same situation

[Michael Peoples]

If there is negative equity you will seriously struggle to get another lender to take you on. You could try and make overpayments to bring the balance down and then move when you do have equity.

[Shaun Vickery]

Certainly speak to NRAM. As Michael says, if you are in negative equity it is highly unlikely that you would be able to move to an alternative lender at present. Whether they will allow you to extend the term will probably depend on your age and (if appropriate) whether you could afford to continue to meet the repayments into retirement. As Michael rightly points out, making overpayments is another option - I doubt there would be any penalty for doing so but just check this with them first if that's what you decide to do.