Interest only payments question

efchutchy

Hello

Today I phoned Halifax Bank regarding slashing my repayments as I can't afford the current ones. They gave me the option of going interest only for the remaining 2 years of my 3 year fixed mortgage. Result of this would be a drop from £638 pm to £548pm.

If I paid interest only for 2 years, would any other lenders touch me? I only bought the house about 19 months ago but switched to a new mortgage last year to drop the payments from £690 per month. Technically I am probbaly still in negative equity so I really don't know if I could find a better rate than the 5.48% I'm on now?

Cheers

beecher2

If you're in negative equity, you won't be able to change lender for the foreseeable future. Going interest only will mean you're paying no capital at all so you do need a plan of action to pay off the capital at some point. Can you rent out a room?

I'd suggest going onto the Debt Free Wannabee forum to get help with your finances.

Cannon_Fodder

Its already CTL...

http://forums.moneysavingexpert.com/showthread.html?t=2383559&highlight