Switching to interest only mortgage

Hi  - 

We are having difficulty paying our mortgage at the moment. We have a repayment mortgage and have always paid on time for the last 7 years. We are not in arrears but were wondering if the banks would let us change to interest only for a while to make things easier. We approached our bank a year ago but they refused (Banco Sabadell Atlantico).

I seem to remember reading that banks have to consider this proposal now. Does anybody know if this is true?

Thanks in advance, Andrea

Hello Andrea,

My own bank Banco de Valencia have offered me an interest only payment for 3 years. I am thinking of it.

They approached me, rather than me asking them. They want to be sure I can pay, they definitely do not want the house to be turned over to them as a repossession if I do indeed get into difficulties.

I am sure most banks will offer this including yours...If you have a perfect payment record then they should agree, if you dont then you should agree even quicker.

Good Luck

Hi Ricardo - that's a novelty - the bank approaching you!

We do have a perfect payment and credit history so I guess we should try again.

I thought I read somewhere that they were obliged to help if possible, but I probably didn't read it correctly.

Hi Andrea they are not OBLIGED to change you to interest only but all lenders have been encouraged to listen with sympathy by the authorities - many lenders are lending a more sympathetic ear than 12 months ago but it is down to bank discretion - Good luck.