Tracker ends ...

ctaylor

I was lucky to pick a tracker 2 years ago which has meant for the last 10 months I've been paying £50 on an Int.Only loan of £136000 on a property value £240000 - this will end Dec09. I want to get back to repayment but it isn't looking good. What can I afford, well around £700/mth BUT the fact that a third of my income comes from maintenance doesn't go down well with a lot of providers. I have no other
loans [credit rating 999] and for the sake of not moving out of the schoolling area don't want to move for at least next 5 years ... can anyone :eek: help me, please

opinions4u

1) Calm down.

2) Who is your lender?

3) What is their SVR (standard variable rate)?

4) What rate will you go on to when your tracker ends?

5) Please tell the forum the split between earned and unearned income.

An SVR of below 4% may just be the best thing for you at the moment.

getmore4less

If you can afford £700pm what have you done with the £650pm for the last 10 months?

dunstonh

getmore4less wrote: »

If you can afford £700pm what have you done with the £650pm for the last 10 months?

Hopefully, like may other sensible people, put it into the mortgage as an overpayment or built up personal savings.

can anyone :eek: help me, please

why the panic? What is the rate you will be going on when the deal expires? Is is a different tracker rate or Standard Variable rate?

I want to get back to repayment but it isn't looking good.

why not? If you have only been paying £50 and can afford £700 then you have loads of scope unless you have left it too late.

ctaylor

I’m with Abbey the STV quoted to me will be 4.26%
I chose to upgrade my property with new Kit and Bathroom with what I was saving over the past months
I’m 53 with a young child so potentially 12 years left in me to work –
Take home pay £1200 made up to £1800 by maintenance +Tax credits

Apologies for posting my thread twice

dunstonh

I’m 53 with a young child so potentially 12 years left in me to work –

Now I see why you are worried. Its a shame you didnt use the extra money to start reducing your mortgage. £136k with 12 year term @ 4.29% is £1209 pm on repayment basis.

Thats £500pm more than your budget. As rates go back up again in future, then you will be looking at £1400 if the long term average of 7% is hit.

Do you any other areas where you can reduce your expenditure or savings/investments that can be used to reduce the debt.

ctaylor

Would I be daft to negotiate a further 2 year Int Only which would mean having to sell at the end -hopefully my flat will have increased in value,and this time save the £200-£300 difference to pay off some capital. The C S A have been chasing a large arrears payment and seem to be making some progress but
I'm not holding my breath. I don't have saving/investments that all went when I
tried to hang on to this property when the ex left.

opinions4u

ctaylor wrote: »

Would I be daft to negotiate a further 2 year Int Only which would mean having to sell at the end

If you do this you should make sure that you overpay significantly to start chipping away at the debt. As things stand you are going to end up in rented accommodation at some point in the future because you simply can't afford this mortgage if you set it up properly.

hopefully my flat will have increased in value

I think relying on "hopefully" is burying your head in the sand.

uzubairu

ctaylor wrote: »

I’m with Abbey the STV quoted to me will be 4.26%
I chose to upgrade my property with new Kit and Bathroom with what I was saving over the past months
I’m 53 with a young child so potentially 12 years left in me to work –
Take home pay £1200 made up to £1800 by maintenance +Tax credits

Apologies for posting my thread twice

Is your property currently worth £240K, or are you waiting for it to rise to that value again before trying to sell it?
Your situation doesn't look too good.
You may have no other option but to sell up and rent.

With hindsight, upgrading the property probably wasn't the best idea.

Why not visit the Debt Free Wannabee forum and get some ideas on reducing your outgoings as much as possible.
Those savings could be used to repay the capital.

ctaylor

The property is currently worth £240K - possibly more because of the kit+bathroom tarting up, and in a very nice area of Edinburgh so has only ever increased or stayed static in value - which is why I desperately want to hang on to it -seems buying it was the only sensible thing I've done in recent years and it's the only thing I have left of value.
I'm going to look on Debt websites as suggested.

steve237

Can you take a lodger?