Can I move a fixed rate loan to interest only?

[idontknow]

Just looking for a bit of advice as we are thinking of requesting a move to interest only for a year to get us out of a hole;

• If you are on a fixed rate do the usual penalties apply?
• Would this appear on credit record? (although other lenders may cop on to this if payments reduce anyway)
• Is there any red tape to move back to normal payment i.e. proof of income etc. or is it agreed for an agreed timeframe?

Thanks

 

[Brendan Burgess]

This is the opposite of trying to move a fixed rate loan to a variable loan.

So the bank gains by you moving to interest only as it will take you longer to pay off the loan.

This should not appear on your ICB credit record and even if it did, it would not cause a problem. It's quite normal and responsible to reschedule loans.