West Brom interest only demand?

West Brom interest only demand?

15:05 PM, 9th April 2018, About 5 years ago 3

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As I’m sure all West Brom mortgage holders have, I have recently received a letter from the West Brom essentially demanding that I inform them of my plans to pay off my ‘interest only’ mortgage once it comes to an end.

While I’m used to lenders sending out letters saying I should ‘consider’ / ‘have plans in place’ regarding how I will pay off my mortgage one day, the West Brom letter is the first time a lender has demanded I provide this information.

My question is, does anyone know if they have the legal right to demand this information from me? Or is it at my discretion whether I supply it to them.

Any advice would be greatly appreciated.




Neil Patterson View Profile

15:12 PM, 9th April 2018, About 5 years ago

After the hard fought case against West Brom returning everyone to their original contract please don't so anything to change it.

I personally would just ignore the letter for now until or if they have a legally compelling case to force you to respond.

I am sure it is probably just regulation compelling the lender to show they have systems in place demonstrating borrowers can repay mortgages and that they are a responsible lender - NOT!

Mark Alexander - Founder of Property118 View Profile

16:46 PM, 9th April 2018, About 5 years ago

All lenders are compelled by their regulators to send these letters, you are not compelled to respond, but if you don't they will keep coming.

There is no is nothing to worry about, they just need to tick their boxes.

My standard response is as follows:-

Thank you for your letter. Our plans are likely to result in selling or refinancing well before our buy to let mortgage term is due to expire. Yours ....


13:08 PM, 18th April 2018, About 5 years ago

I recently had a similar letter from one of my mortgage providers. "Demand" seems a bit strong; mine "requested" that I tick a box indicating how I plan to repay the mortgage. I ticked almost everything: sale, inheritance, payment from ISAs, payment from drawn-down SIPP. All these options are in fact available to me, and I don't myself know what method I will choose.
Until they start demanding that you see an IFA and give them a detailed breakdown of your rate of saving to *prove* you can pay off the mortgage, I wouldn't worry. The fallback position is always just to say that you intend to sell the property at some point, and unless we have a lasting house price crash at some point, they are unlikely to contest your assertion.

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