Help pls on interest only,,,,

emvic

hello all hoping someone can help,

3yrs ago moved house, into a village we hated it too far to travel for work, we was there 6months, so we moved back luckily got a house in the same square we moved from. only down fall only way we could afford it was "Interest only" this is a fixed deal for 3yrs runs out June next year. Which by then we were hoping change onto repayment...
Now we have just had a interim order where a loan has been added on to my mortgage - we dont have much equity so now we owe more than what the mortgage is worth.
Will a mortgage lender allow us to change mortgage to repayment...or is that going to stop us... ??

zppp

The mortgage company will check the affordability of doing this, especially where the repayments increase as a result of this. if you change to another lender, they will do similar checks anyway. In your case as you have taken out additional borrowing, affordability is the biggest factor.

What is the value of your mortgage and the additional borrowing, and what is your income. This may help us see what can be done.

emvic

Thanks,
ourstanding mortgage is 86,000 at present house is worth i think 90,000 (was 98,000 last year)
then with this loan that rbs has had added onto my mortgage for 34k with this interim court order.

at present my mortgage apr is 8.4% this was only mortgage i could get at the time as my credit is terrible... even worse now since carry on with my mortgage last year.
cheers

zppp

OK, so your mortgage is with RBS? How much are your current monthly repayments?
What is your income; it may be possible to get quite a low fixed rate deal, especially because the BoE base rate is so low.

I think you may want to play around with this calculator - what is interesting is that the general rule is that your payment goes up by 50% if you look to change from interest only to capital + interest.

http://www.rbs.co.uk/personal/mortgages/g4/comparison-calculator.ashx

Let us know, and we'll see if we can help

getmore4less

This is a much bigger problem than a mortgage

Mortgage defaults, DMP, payday loans.


Please go to debt free wannabe
http://forums.moneysavingexpert.com/forumdisplay.php?f=76

And deal with all you money issues in one place.

emvic

Hi zipp, no mortgage now with ge money. we de faulted wiht our mortgage last year -we defaulted due to my husband loosing his job, they took us to court for repoccession order now sorted infact ge money after been in court, agreed to put arrears on the term of mortgage they said the court judgement would be clear.
Only problem could not afford to come out of me fixed term till next year, do you think a mortgage co will accept us with a new repayment mortgage - would be devasted if i had to stay on inerest only...

getmore4less

You cant afford it,

You have been borrowing money to pay the interest only mortgage so how do you think you can afford a repayment?

only yesterday

https://forums.moneysavingexpert.com/discussion/comment/32991535#Comment_32991535

hi, I knw i am soooooo stupid getting involved with this company but i was in need of money early in the year and each month i have borrowed started off with 150 but now didiculas owing 800pounds

ILW

As others have said, you seem to be struggling so why do you want to increase your monthly payments?
If you do have the spare cash though, could you not just overpay?

beecher2

You need to get your other finances in order first - have you posted a Statement of Affairs on the Debt Free Wannabee forums?
Use this http://www.makesenseofcards.com/soacalc.html to do so.
As a priority you need to get the payday loans sorted out

emvic

my apr at mo is 8.4% so i was hoping that i may get a lower rate to warrent maybe the same as what i am paying now.

getmore4less

emvic wrote: »

my apr at mo is 8.4% so i was hoping that i may get a lower rate to warrent maybe the same as what i am paying now.

You can't afford what you are paying now.