Possible move to interest only - advice please

lizandalfiecat

Hi

Need sme advice and have zero cash to go to a financial advisor!

I'm having major debt hassle (getting help though) due to business folding. Looks like having to go bankrupt (again getting prof help). Am single with no dependants, only got part time temp work at moment, looking obviously for more (working hard from tips in the Increase your income forum too)

I can't afford my repayment morgage or £425 (done ingoing/outgoings) Can't sell house as in negative equity and can't get alternative private accom due to (now) bad credit history and limited rental stock and high rent costs-more than morgage, no help from local authority except homelessness. Have to save my house!

Had 1 month payment break for July 09, company not offer any more. Being offered interest only for about £130 month.

Questions

1. Understand that if go for interest only, the amount owed will not diminish, like in repayment. Is there anything else I should be aware of?
2. I think you have to have some kind of policy running along side the interest only option, but don't know what it is/called/covers. How do I get one?
   
3. I have some kind of policy already running with the repayment but don't know what it's for really. What happens to this if I move to interest only?
   
4. If I loose my job before I find another, can you get any benefits for interest only payment? Seem to remember you used to be able to years ago.
5. If I have to go interest only option just to survive in shorter term, will there be anything I need to be aware of when moving back to repayment?

Please give answers under each question individualy - dyslexic and very stressed so need info to be easily accessible to my eyeballs!

Many thanks
Liz