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The Masked Tulip

Interest Only To Repayment Mortgage When Selling?

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IIRC I read on here a few weeks back that banks were now making people on IO mortgages who decide to sell that they have to move over to a repayment mortgage. Is this right?

There has been a huge slow-down in property coming on the market in Swansea - all the EAs were expecting a bumper September as they claim September is their best month. Now they are worried about the lack of houses coming on the market.

I was just wondering whether, as I have been told that my area has a very high percentage of interest only mortgages, whether the above is indeed true and whether this is simply stopping people from moving?

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Wouldn't that depend on if you "repay" the existing debt. I seem to remember that when we last moved one option was to take our current mortgage and get the extra from a new one, however we were on a repayment mortgage so no idea if in the terms of a IO mortgage if you move you have to pay off the debt?

Also can people afford to move on IO mortgages aren't they more likely to be in NE than those on repayment?

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If you're in the business the exotic funding still seems to be available - I know, indirectly, a semi-amateur BTL'er who has a number of properties and is having no problem getting new IO on trackers.

The lockouts are just for the proles who don't know people.

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Wouldn't that depend on if you "repay" the existing debt. I seem to remember that when we last moved one option was to take our current mortgage and get the extra from a new one, however we were on a repayment mortgage so no idea if in the terms of a IO mortgage if you move you have to pay off the debt?

Also can people afford to move on IO mortgages aren't they more likely to be in NE than those on repayment?

Hmmm, lets see...

No, I'm about £60, 000 in equity on a £160, 000 house. We have the finances to move up the ladder with a similar LTV perhaps in the £250-300k range (midlands) but I/we refuse to move into more overpriced housing and have the pleasure of paying double tge amount of council tax. No suree, no wayy.

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Hmmm, lets see...

No, I'm about £60, 000 in equity on a £160, 000 house. We have the finances to move up the ladder with a similar LTV perhaps in the £250-300k range (midlands) but I/we refuse to move into more overpriced housing and have the pleasure of paying double tge amount of council tax. No suree, no wayy.

Conclusive proof I feel. Thanks.

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IIRC I read on here a few weeks back that banks were now making people on IO mortgages who decide to sell that they have to move over to a repayment mortgage. Is this right?

There has been a huge slow-down in property coming on the market in Swansea - all the EAs were expecting a bumper September as they claim September is their best month. Now they are worried about the lack of houses coming on the market.

I was just wondering whether, as I have been told that my area has a very high percentage of interest only mortgages, whether the above is indeed true and whether this is simply stopping people from moving?

I can port my mortgage, and extend the loan at the same very favourable rate, but the bank have said that I would have to switch from interest only unless I can show one of a very narrow range of repayment vehicles is in place. Incidentally, I only went IO because when interest rates dropped to hear zero, I could make more on the money elswhere, even after tax and it have me better flexibility.

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