Interest only on our mortgage, advice please

Moomin30

Hi There

I am just curious to your feed back, i was maybe thinking about doing an interest on our mortgage just for a short time in order to pay of our credit card debts which we currently owe 14000 between me and my partner, i have heard good reactions about doing this but also bed points about doing this, also could someone please inform ho much time it would take to clear up this debt.

We currently owe 134000 on our mortgage we pay 600pcm at an interest rate of 4% with Halifax we have 27 years left on our term and we have had this mortgage for 3yrs now, we would like to try for a baby again later this year we already have a four year old daughter but i do not want to have another baby yet until i have cleared of this debt, which would help us out financially each and apart from our mortgage this is our ony debt.

I was maybe thinking about taking interest only for a year and pay of as much debt as possible then if we were to have a baby look at taking 6 months payment hoilday which will help us in the short term, not sure what is to do for the best, i am do a pay increase and hoping to work back to full time currently do 28hr pw so if i can increase that will take me upto 35hrs pw so we will be better of by about 200pcm, also if i need to i will get a weekend job i am not scared of hard work its just that with full time job and a family to keep i don't want to over work myself not sure waht to really.

Also in the future at some pint we will come in to some inhertiance but i want to try and make us a little more stable for now, as if we were to have a another baby i would definatley have to go back to work pt maybe 21hrs pw.

Please all view welcome thanks :0) x

motch

hi moomin

How much is your house valued at ? At todays figures.
£600 pcm sounds cheap for the figures you've given, works out at about £680 by my calculations.
A lot of lenders would rather you kept on repayment in these times of negative equity/house price drops. Some may charge a fee for changing from repayment to interest only, if they decide to allow changes.
i'd personally try and balance transfer any high interest rate credit cards onto lower ones ie about 3% for a year or more, and clear like crazy.

Moomin30

Hi there Motch,

Thanks for your reply our house value is currently at 158k, i have tried to do a balance transfer on my current cc but i have been turned due the fact that i made 1 late payments whch was entirely my fault but they have put me onto an interest of 14.9%, i currently owe 6100 on my balance but my partner is still on 0% as he has not missed any payments but is is due to exoire soon so i am currently looking at new long term balance transfer for him which i am hoping will not be an issue like mine, he owes 7100 on his cc.

Just don't what to do for the really as we have more money going out then we actually have coming in at the moment.

feisty1

you need to jump over to the debt boards on here

Moomin30

Hi there,

I have already beeb on the debt free part and put on my SOA, when iposted this i was advised to jump on this part of forum

caracal_77

Moomin30 wrote: »

Hi there,

I have already beeb on the debt free part and put on my SOA, when iposted this i was advised to jump on this part of forum

Not sure why someone suggested you post here. You obviously have a budget problem, not a mortgage one.
Cutting your outgoings is critical for you, that's what you should be focusing on.