Hi
We have been trying to arrange a mortgage to buy a new house - its a dilapidated wreck so we needed to have two mortgages for a while so we could live in the current house while putting a new roof on the new house. In order to do this, we HAD to be able to have an interest only mortgage on the new house, we have always been clear with our mortgage broker on this. He told us about a deal at least 6-8 weeks ago and we assumed he was going ahead with it. Yesterday he called to say that the deal no longer existed and we could only do a repayment mortgage. Now clearly, the markets are changing all the time, but we had assumed we were booked into the original deal of interest only mortgage. So here's the question, if he had actually arranged the mortgage for us at the time we spoke about it, 6 weeks ago but to start in December (is that even possible?), and Cheltenham and Gloucester had then changed their terms so it could only be repayment, would they have been able to change our new mortgage agreement to be repayment, or would they have had to stick with the original conditions of interest only? I suppose what I am asking is, if he had done what we thought he was doing (arranging the mortgage at the time we asked him to), would we still be in this position , faced with a repayment mortgage, which effectively means we cannot go ahead with our purchase of our (albeit dilapidated) dream house?
Thanks
Red
