Cannot get out of trap

must_be_free

Can anyone advise i got mortgage when i was in business no longer trading got into arears mortgage is interest only now in job with lower pay cannot remortgage cannot get cheap mortgage stuck with lender paying only interest on 224000 for the last six year how can i get out do i have to sell to move to new lender pls advise

maninthestreet

You are going to have to give us far more information than this if you want some help. What is the current interest rate you are paying, is this SVR, or is it fixed/discounted rate, if so how long remaining, any early repayment charges, who is the lender? Are you in arrears at all, if so how much are the arrears? What is you current gross annual income? What is the current value of the property?

Daft_Pegasus

I suggest you also use some punctuation. Otherwise we may misunderstand the information you're providing.

must_be_free

thank you guy for replying to my message i couldn't get back into my forum.

let me start again,

i was self employed six years ago when i took out my mortgage it is interest only, about two years after getting the morgage i lost everything the company went under and i was in arears so the bank put it on the mortgage for me the bank is natwest.

i was out of work for about two years and my arears went o ten thousand pounds and they took me to court, so now i am paying the interest plust 100 towards the arears it will take me ten years to clear the arears

so i cant move to another lender because my income is only 28000 per year so cannot remortgage on such low income and because am in arears i cannot change my rate of 4.5 percent interest rate
so now am stuck until i can clear the arears anf it cost me already 76000 in terest over the six years already

what can you advise me of to get out of it

Joe_Bloggs

4.5% is a good rate given what you can get these days with a poor loan to value ratio. Can you spend less, save more and make overpayments so that the interest you pay is less each month hence the capital you can pay each month is increased ? That is create a capital repayment strategy.
J_B.

mrs_deadline

Sounds like a big mortgage for your income, I'm guessing it is quite a stretch now? Do you have equity in the house?

pammyj74

if you sell the house will you be in even more debt?
I wouldnt say you are on a low income but for that mortgage you are.
Are there things you can sell, reduce, stop paying for (ie things you want but dont need)
Sort your priorotys out and try and pay what you can into the mortgage if you have no equity.

maninthestreet

OP: You still haven't told us how much the house is worth. Assuming the 4.5% interest rate has been in force for the last 6 years, and you have paid £76,000 in interest over that period, this gives an oustanding mortgage debt of about £281,000, rather than £224,000 you state in your opening post. This is 10 times your income. There is no way you are going to be able to service this debt given your level of income, no matter what economies you make elsewhere. If the house is worth more than the mortgage debt, then you should seriously consider selling it.

must_be_free

i am not understanding what you said please the oustanding balance is 224,000 i can sell for about 250,000 paid interest only for 6 years of 76,000

pawlala

how much do you owe now??

mrs_deadline

must_be_free wrote: »

i am not understanding what you said please the oustanding balance is 224,000 i can sell for about 250,000 paid interest only for 6 years of 76,000

Outstanding Balance means Mortgage Amount + Arrears Amount, i.e. what is the total amount currently owed to Natwest and secured on the house?

Are you determined to try and keep the house, or are you just desperate to be free of it?