Trust Deed Forum - Mortgage problem
Trust-Deed.co.uk
Home Home Page









Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 Mortgage problem
 New Topic  Reply to Topic
Author Previous Topic Topic Next Topic  

Youjoe
Just Joined

2 Posts

Posted - 02 September 2020 :  20:24:07  Show Profile  Reply with Quote
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.

TDA (Debt Adviser)
Trust Deed Expert



13486 Posts

Posted - 03 September 2020 :  08:50:23  Show Profile  Reply with Quote
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.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

Youjoe
Just Joined

2 Posts

Posted - 03 September 2020 :  14:21:26  Show Profile  Reply with Quote
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.
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13486 Posts

Posted - 03 September 2020 :  14:38:37  Show Profile  Reply with Quote
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?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2020 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.