Interest only mortgage

[molly malone]

I want to change my mortgage from interest only to a repayment, should i shop around or stay with Abbey?

[spaced]

im with Intelligent Finance. Check out www.if.com.

They are very good.

[molly malone]

Thanks spaced, I'll check it out.

[Postdog]

I was going to say definitely shop around. I saw the last answer and funnily enough, I am also with IF, having gone there about six months after they started. I certainly have no complaints about them, specifically because like you, I have an interest only mortgage, and in my case it is pointless changing to a repayment, because I have been paying the endowments for so long. As with may others, I'm due for a shortfall, but IF allows you to overpay your mortgage, and they have been quite flexible about converting part of the mortgage to capital/interest, so whilst I can't afford to change the whole mortgage, I am able (hopefully) to make up the shortfall with no real effort.

[sammd]

It's worth doing a quick whizz around some other building societies (or asking a mortgage broker what the best deal is at the mo interest rate wise).

[stevie21]

I'd do both - Abbey seem confident that their new flexible mortgage has a market leading rate with no booking fee etc.
Then again, as a company, Abbey are pathologically useless. Maybe being taken over by Santander has improved them some.

Either way, get a quote from them on a different type of mortgage (their "retentions" team will have to persuade you not to take your business elsewhere by offering you something) and also shop around. I'd maybe visit one of those independent mortgage advisors that seem to be dotted about everywhere I go : they don't charge you the customer for finding the best deal but are instead paid a finders fee by the lender.

One thing to bear in mind though, most lenders tend to think that the most profitable part of acquiring a new mortgage customer is by adding on extra sales such as buildings & contents insurance, life cover, paymentcare etc. etc.
If you already have these, then either leave them as they are or change only if you can get a cheaper/better deal. Don't just move them because you're changing your mortgage and are in the mood for a change.

[molly malone]

Thanks to everyone who replied. After phoning Abbey I'm thinking of keeping my endowment and changing part of the mortgage to capital + interest. Think I'll also see an independent mortgage adviser as Stevie suggests, but I'm going to shop around as the Abbey didn't offer any incentive to stay and are charging �75 conversion fee.