need help for mortgage dilemna

Gorgeous_George

What is the interest rate, LTV, mortgage size, target completion date, your ages, employment/salary prospects? Could there be an inheritance to help pay the mortgage off?

If you stay on interest only, you may be able to remortgage when Mortgage Express need repaying but your ages may be an issue. Your LTV may be better by then. Another alternative would be to sell up, either now or in the future and rent/buy somewhere cheaper.

GG

magpiecottage

Leon_W wrote: »

For one it's a very rigid structure and you would probably not be able to switch back. Secondly, you have to find out what rate you are actually paying, if it's less than you would receive in a savings account then again, why overpay the mortgage.

It is unlikely that savings would outstrip reducing the mortgage, mainly because they are generally lower because paying savers more than you charge borrowers is an unsustainable business model but also because the savings (other than in an ISA) will be subject to tax whilst you get no tax relief on the mortgage payments.

In addition, adjustments to the interest chargeable is worked out on a daily basis for the mortgage but interest is normally only credited to a mortgage account (so that you earn interest on interest) once a year - so don't just look at the headline rate.

In addition, do remember that if you put money aside to repay your mortgage once it gets over £10,000 (I think) you will be expected to use it to live on instead of getting state benefits if you lose your income.

dimbo61

You posted this question some 4 days ago and really we need more information!
You need to talk to your lender and ask can you overpay your IO mortgage.
You need to give us your interest rate and other details LTV,income, ETC
Have you got any emergency savings ?
Perhaps if you overpaid 50% and saved 50% each month into cash ISA,s
Use "whatsthecost" to work out how much it would cost to cahnge to repayment and overpay your IO mortagge by this amount or like I said 50/50

brokeanddown01

Apologies dimbo61 but computer went wrong so had to wait until i returned to work as work 4 nights on 4 nights off. I will find out this info for you and hopefully have an answer in a couple of days.No savings to speak of, up to our necks in debt but 2011 is the year we take stock and sort all the mess out.

brokeanddown01

Hi All it has been a while since i have been on here. I have now set up an ISA to start saving some money.We have 18 years 4 months to go on interest only mortgagae with Mortgage Express. My daughter and son in law have expressed an interest in buying our house which we would sell to them the cost of the rest of the mortgage, they are going to build a double extension and we are able to live with them until we die which they have agreed to put in writing to a solicitor. Can anybody see any problems with this as this will make us mortgage free and we will pay them rent.

poppy10_2

brokeanddown01 wrote: »

we are able to live with them until we die which they have agreed to put in writing to a solicitor.

I don't think this bit would be enforceable if they were to change their mind and want you out at some point