advice needed please

confused969

hello i wondered if anyone could give advice/thoughts on our situation,i will explain and try to keep it brief

my husband is self employed in the building trade, i dont work stay at home mum looking after 3 children,in the past my husband has been on fairly good money,but much of the work has dryed up and its very worrying

we have an interest only morgage of £34000,a repayment morgage that we took out for an extention on the property about £8000 left to pay, and a car loan of around £6000 left to pay

we had an endowment policy which i cashed in when things started going pear shaped this is for £20000, plus we have £10000 in savings so £30000 in total

i would ideally like to pay off some of the morgage/loans but i am worried bout doing this, if my husbands work dries up completly we would have nothing to fall back on

i have been looking at first direct offset tracker morgage ( interest only) if we borrowed £50000 to pay of our morgage/loan and banked the £30000 with them we would only be paying approx £50 a month

at the moment we pay £300 per month for the interest only morgage/repayment morgage and £180 car loan, so the money we would be saving approx £400 could be paid into the savings plan with first direct, which will go towards paying the morgage back, but we would still have access to our savings should the need arise.

chivers1977

what do the accounts look like for the past two years. Would he be able to provide income to support a new £50 mortgage. Offset does sound ideal for you in the situation imho but really you need to see a broker to discuss the best option for you.

confused969

thanks for your reply his last 3 years have been quite good so i dont think there would be any problem borrowing the £50000 also our property is worth around £170000, just wanted to sound it out on here,with the offset morgage and the £30000 in savings it will just make the £20000 total debt more managable and in one place,also i want to act whilst we are still in a position to do something about the debt and not wait untill worst case scenario-husbands work drys up completly and we cant meet our monthly morgage/loan payments, this way we can pay approx £500 per month into the savings whilst he has work,but if he cant get work for a while we can stop paying into the savings for a while, i know our morgage is quite low compared to many people,but i worry constantly, i think its the fact my husband work situation is so uncertain, he could go to work on the site monday morning and come home monday night having being finished with no warning, and no one knows how long this down turn will last, it could be years