Regular poster NC for this, posting here for traffic. I'm so stressed that I can't sleep for more than a few hours at the moment and I feel sick all the time.
DH and I own a business, we have a commercial repayment mortgage, the property is part commercial, part domestic so it's our home too.
The business is struggling and we've decided that our best bet is to wind up the business and get jobs and in time get planning permission to convert fully to a home. We both have good skillsets.
We can both freelance or temp to start with and keep our heads above water but only if we switch to an interest only mortgage. I know I need to speak to the bank urgently but I'm scared that I won't like the answer. My worst case scenario is that they won't let us switch to interest only, we go under and they auction the property to pay off the mortgage and we would lose our equity.
Does anyone have any experience of this and how the bank are likely to react? Would they make us switch to a residential mortgage which we'd be unlikely to be approved for as we don't have earnings yet or would they be OK regardless as long as we make interest payments? There's one bit of the property that we would continue to let out on a commercial basis and that provides a small income so technically there'll still be a commercial aspect. Any thoughts appreciated but please be gentle with me, I'm not in a good place!