How long will I be able to stay on interest only?

KittyBoo_2

I have been on Incapacity Benefit for over a year now and have been on interest only for the last 3 months.
I am going to be out of work for some time and wondered how long the Halifax will allow me to continue with this.
I am struggling to pay the interest out of my IB but don't want to end up in arrears.
I have minimum payments arranged with all of my creditors and live very frugally.
Does anyone know if there is a limit to the time I will be able to stay on interest only?

sammyjammy

It all depends on what you agreed with them. You do need to consider whether this is a long term situation and what you will do to repay the capital if it is.

hillcats

I would've thought (assuming no arrangements?) as long as you need to be, but and its a BIG BUT you must not forget that you are still responsible for paying the capital back, of which will never shrink on this option.

I believe it still states on applications for this type of mortgage that: - you will need to make arrangements for a suitable repayment vehicle to be in place.

KittyBoo_2

I suppose that the worse case scenario is that the house will have to be sold if I am not able to return to work.
I am 51 and have 15 years left on the mortgage and my sole income is my Incapacity Benefit.
I do get help with my council tax but I have no capital.
I am just keeping my head above water but have managed to pay the interest only.
I have had a DWP medical recently that confirmed I am not fit for work and I don't see my situation changing yet.
At least I still have a roof over my head and the bills are being paid so I do feel lucky in that respect.