Is this a good idea

endemoniada_2

Folks,

I've a mortgage balance of around 98K on house valued at 95K last year. Now probably worth 105K.

paying 530 a month to NR ( repayment) - no tie in.
I have 11.5K on 0% CC and 5K student loans (?3.9%).

Should I go to interst only mortgage??? Then have more cash to be able to snowball my other debts quicker.

CLAPTON

basically is a very bad idea.
a. you will pay much more interest over the longer term with an interest only mortgage
b. you will probably pay fees to convert to it
c. you will probably pay fees to convert back
d. there will of course never be a 'good' time to convert back as it will costs more in monthly repayments

e. i would ignore the student loan for the time being (except what you have to pay) and pay off the highest APR cc's or overdraft


hope the job interview goes well.

endemoniada_2

Thanks Clapton.

That makes sense.

It's the student loan that is crippling me- paying 150 a month to that! just over the threshold for derferment!
CC on 0% - min payment only 40 a month!

I do feel lucky that the value of my home has risen to effectively swallow my debts - which helps me sleep at night.
My plan is to sell up next year and buy with my DP. Want to be debt free ( will be when i sell) but more importantly, would like to have some capital too!!

CLAPTON

is the student loan a standard loan ...as in student loan company?..i thought you only pay 9% above 15,000 ...so if you're paying 150 a month you must being earning a nice salary, and hopefully that job interview may bring an increase?

endemoniada_2

Yeah, from Student Loan Company - graduated in 98.
I earn 25k, under their rules, I now have to start paying. I'm £64 over the 2K a month threshold!!