Please help - simple advice if possible :)

*Summertime*

My situation:

Me - Property Manager
Husband - Landscape gardener

Property - Repayment mortgage in 3rd year of fixed rate on our first house in the UK. Very high interest rate-we are paying £1088per month

Property in Cyprus - £470per month

HSBC loan (£20k) £263per month

On top of the above are the usual out goings and bills.

I am expecting out first baby next month.

I have saved enough for 6 months maternity leave, after which I will go back to work full time as I need to be earning, not ideal but there is no other option.

Anyway, if anyone has any advice on the following I would be really grateful. I called my mortgage company today (Halifax) but the lines are closed until Monday, I wanted to ask about changing to interest only for a while, would this affect us trying to remortgage in May 2011? It is only 6 months away so is it worth us just trying our very best to pay all the bills and stay on top of things, or shall we give in and take the pressure off if only a tiny bit.

We both thought we were doing the right things for our future but we are struggling with the present which doesn't seem right. We cannot cut down on our outgoings any more than we already have.....

dimbo61

What you dont give is the property value and current LTV or the deposit you put down ( little deposit because high interest rate ?)
Now what happens the mortgage once the fiixed rate ends ? Read the paperwork carefully
Does it revert to the lenders SVR or some form of tracker deal.
Now the paperwork is nearly 3 years old so dont worry if it gives the SVR in 2007 ???
The Halifax SVR is 3.50% so thats good and will be alot less than you are paying now.
Bear this in mind when you do speak to them and ask what rate you go onto when you call the mortgage centre and can they give you an idea of what the new mortgage payment might be.
If you bought 3 years ago at hight of the boom with little deposit then you may have little equity and high LTV 90/95% so may end up on SVR which is not all bad at the moment.
Good Luck with the baby and dont forget to ring the midwife nice and early or get into the labour ward pronto