mortgage advice

luckyjim_3

Having recently retired from the civil service.it has become apparent that my monthly income from my pension and employment support allowance is going to stretch me to the limit.(i have been ill since march)but because of my wifes old age pension i cannot get pension credits.
I have a repayment mortgage with 4years 9months to run £19200
interest on this is approx £96per month.
Any advice here what to do,I know I can switch to interest only but where does that leave the balance if i have to start eating into my lump sum.
The benefits people would not be happy if i had to clear my morgage.

benjo

Im sorry, I dont know much about benefits for mortgage relief but....

Visit CAB and be sure you are claiming the correct benefits for a starter.

Contact your local council and find out if you qualify for any council tax discounts or benefits.

Hop over to the debt free wanna be board, they have some great ideas about reducing expenditure and increasing income.

I dunno how much of a lump sum you have or how you have it invested, but if you posted more details perhaps someone could advise if it is worth saving this or paying off some of your mortgage thus reducing the interest payments.

Goodluck.

dimbo61

Hi jim if you are paying 3/4/5% interest on your mortgage and only getting 2/3% before TAX on the savings you have then you maybe better off to clear the mortgage !
If your not getting any pension credits it will make no difference if you clear the mortgage and save paying interest for the next 5 years.
Benjo has given you excellent advice GOOD LUCK IN 2010