Switching to interest only mortgage for temp basis?

KellyGT

Hiya all

Please forgive me if this is a ridiculous question as i have very limited knowledge of mortgages etc etc

Basically been with northern rock since we bought out house came out of our fixed rate term and are now just on the standard rate and due to the way everything is at the moment this is cheaper than what our fixed rate was.

I dont think we would be able to get another mortgage with anybody our house is just worth what we owe and nobody seems to be offering much to people who need 100% plus it would be wiser to clear our debt first hence my next Q.

Is it possible to switch from our repayment mortgage to interest only for a temp period of a year or so?
I know your suppose to have some other thing in place coz the full amount isnt being repaid etc etc
I only ask as we have friends who did this for a few years (without something else in place) just so their outgoings where cheap and they could get on their feet. I'm asking so to see if it would be possible clear some money up per month which can then pay off our loans/credit cards quicker. We're only young (25) and some people dont even have houses yet at this age so was hoping that would be on our side.

Is it a ridiculous suggestion?

Helpful advice welcomed

Peelerfart

I think Kelly you should just ask them.It does't matter what anyone on here says does it, it's what they say that counts.

All I can add is you're not the first to ask the question.

KellyGT

Thanks for the reply

I phoned them it only drops around £80 or so i dont think its worth the hassle etc for such an amount (not yet anyway) I would have been tempted if it was a few hundred more.

Peelerfart

DD7 wrote: »

If your repayments are now lower on the standard variable rate (SVR) than on your fixed rate, and you're saying that you're trapped with Northern Rock duie to negative equity, why on earth would you want to compound this problem by going interest only?

Surely you should be throwing as much money as you can at the mortgage to reduce your negative equity rather than not paying anything off the capital at all?

Because as the OP says to "pay off our loans/credit cards quicker", which are almost certainly at a higher interest rate than the mortgage.