Mortgage - What Next Advice Pls

resolutiontwin

Mortgage currently £760 interest only. Rang Halifax today to ask if they can re-negotiate our deal as not only not paying mortgage off but finding it difficult at 7.? interest rate.
Options advised no as we would need £3,800 upfront to save us £3,600 over 3 yrs (havent got 3.8k)
Recommended secure collections who advised they could reduce it for 3-6 months but any arrears would be recorded on our credit file and the interest only payment would be higher afterwards (moving goal osts). Any ideas would be appreciated.

Cannon_Fodder

Downsize.
Economize.
Maximize income.
Rationalize any other assets.

Go to debt-free and mortgage-free forums for more detailed ideas.

resolutiontwin

Hi Cannon, we have already downsized which is why we had no choice on 7.? interest at time (Jan 09). Economize, I am sure you being the super fan you are will appreciate what extremes we have already gone to without stating the obvious. Maximise income - I was advised last week I got full time job after xmas the same day hubbie got told he is going on 3 poss 2 days week !! Rationalize any other assets - pension is our last asset which we are too young to go to yet. Will take a look at the other site but do hope someone has got a thought we havent had yet. Thanks again.

beecher2

Cannon Fodder's options look like the only ones I can think of too - having authorised arrears is only going to be a very short time measure, and if you're in a deal you can't get out of it without paying an ERC and another arrangement fee. You're not paying off any of the capital so need a plan about how to do that too. The only other option I can think of is selling up and renting, but you'd still have to pay the ERC.

Definitely go on the Debt Free Wannabee forum and post a Statement of Affairs as they might see ways for you to save on expenditure, ie selling car/cutting grocery bill etc.

resolutiontwin

Thank you for your help, attempting to work out statement of affairs using the budget sheet as we speak. Thanks again.