Go Interest only for 1 year?

mazza25

I'm not really asking for professional advice on this as such.

We have a mortgage with Accord (subsiduary of Yorkshire), we are currently on a fixed rate 5.99% mortgage which we locked into in January, when our previous rate ran out.
We locked in so we could be sure what we were paying out each month. We are on a repayment mortgage.

We have (stupidly) been using pay day advance loans and are desperate to pay these off as the interest is stupid. We have other debts aswell and currently feel like we are treading water.

Would it be a good idea to ask the mortgage company if we could go interest only for 1 year. A quick calculation shows us we would be better of by around £110 a month. We have 2 months left of extra nursery payments which will give us an extra £100 a month also, plus my husbands tax code is finally returning to a decent one (company car) so we are thinking with all this we could get stuck in to our debts finally.

We have 27 years left on our mortgage and we think we have around £9000 in unsecured debts. My husband (stupidly lol) took an IVA but didn't have much choice at the time, that has about 2 years to go, and we are ok paying it. The others are credit cards etc.

Our other option I suppose would be a loan from our local credit union. Any thoughts?



(it's quite nice to write it down and get it out actually!)

getmore4less

wrong board you want this one

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

mazza25

Oh I thought this one was about mortgages?

SimbaSimon

mazza25 wrote: »

I'm not really asking for professional advice on this as such.

We have a mortgage with Accord (subsiduary of Yorkshire), we are currently on a fixed rate 5.99% mortgage which we locked into in January, when our previous rate ran out.
We locked in so we could be sure what we were paying out each month. We are on a repayment mortgage.

We have (stupidly) been using pay day advance loans and are desperate to pay these off as the interest is stupid. We have other debts aswell and currently feel like we are treading water.

Would it be a good idea to ask the mortgage company if we could go interest only for 1 year. A quick calculation shows us we would be better of by around £110 a month. We have 2 months left of extra nursery payments which will give us an extra £100 a month also, plus my husbands tax code is finally returning to a decent one (company car) so we are thinking with all this we could get stuck in to our debts finally.

We have 27 years left on our mortgage and we think we have around £9000 in unsecured debts. My husband (stupidly lol) took an IVA but didn't have much choice at the time, that has about 2 years to go, and we are ok paying it. The others are credit cards etc.

Our other option I suppose would be a loan from our local credit union. Any thoughts?



(it's quite nice to write it down and get it out actually!)

Your locked in until January so how do you plan on getting out of this without paying another fee? You also need a high LTV to go on interest only which you may not have yet given you still have 27 years to go. Best bet is to go through your debts and work out where you can save on your bills and start getting them paid off. Another loan probably won't help.

This is where the debt free wannabes forum comes in as they are good at this stuff

Peelerfart

I agree with Getmore4less.

He has advised the of correct board ,the fact that you -

"(stupidly) been using pay day advance loans" ,and you "(stupidly lol) took an IVA"

Would tell me that it's not the mortgage company who should help. I would say you need to look a little bit closer to home,to the only real people who will help you sort this out.

Sorry if I sound a bit harsh but you really need to get real, IMHO.
Others, including you may have their opinion too.

JA1000

Fixed at 5.99% how long for?

SouthCoast

we are treading water.

If you are having to use payday loans you are actually drowning.

Visit the Debt Free Wannabee Board for a lifebelt.

susieanne

I feel really sorry for the original poster some of you seem to be coming across as really mean ,why be mean to people when they are asking for help and not give helpful advice .Whats wrong with people ????

shobazee

Is it about mortgage?

VIGILANT22

shobazee wrote: »

Is it about mortgage?

Yes it is...try taking time to read!...the clue is highlighted below!

" Would it be a good idea to ask the mortgage company if we could go interest only for 1 year."

getmore4less

susieanne wrote: »

I feel really sorry for the original poster some of you seem to be coming across as really mean ,why be mean to people when they are asking for help and not give helpful advice .Whats wrong with people ????

The OP has a serious debt problem that needs looking at properly
DFW is where the people that can advise on this hang out.

Without a detailed analysis no one can say if an IO mortgage is part of the solution.

Fiddling with the mortgage might form part of the solution but that is much further down the line.