mortgage payments

geg-a-leg

Hey there hope someone can help!

I currently have a mortgage with preferred. I had a 2 year fixed deal with them but it ran out Jan 09 and I could'nt re-mortgage with them or anywhere. My mortgage payments have fallen by a few hundred and Im concerned as I am only really paying the interest. I phoned them asking could I shorten my term or could I pay extra off it a month only to be told that I couldnt do a thing with my account. I dont have the best of credit and Im concerned that next year my payments could rocket and I wont be able to afford them. What else can I do??

Thanks hope I made sense!

fishtastic

You could put the difference between what you used to pay and what you are paying now in a savings account. This could be used to pay off capital in the future, help get a re-mortgage later or help make payments if you get into difficulties later.

The above assume that you can't get a mortgage somewhere else, as you have stated.

Fish

geg-a-leg

Thanks for your help!

Let_Us_See

You don't mention why you can't re-mortgage. Is it because your loan to value (LTV) is too high or your poor current credit record?

If former start saving until you have funds to reduce LTV and ability to re-mortgage, and if latter, maintain all existing credit payments to improve your credit rating. If both....yep, you've guessed it....do both. I am afraid there are no magic answers.