struggling with mortgage

JB72

Hi im new to this so here goes, basically we are currently on a fixed rate of 6.69% until oct 2013 with the natwest, our current balance is £161,787.95 as of our last statement dated sept 2010, our house is currently worth approx £195,000 and our monthly repayments are £1412 a month and have just under 15 years left, we both earn good money but with our other debts, loans and credit cards etc we just about manage each month, I have looked at remortgageing and done the calculations on here and it wouldnt be worth it so was thinking of asking the bank to let us move to interest only for approx one year whilst we pay off other things and get ourselves into a better financial position, any suggestions or advice would be greatly appreciated.

somethingcorporate

That is quite a high fix, given your LTV you should be able to remortgage to a better rate.

What is your Early Repayment Charge for ending the mortgage early?

What is your credit record like?

opinions4u

I would do two things.

1) Go to www.makesenseofcards.co.uk and work out a "statement of affairs".
2) Post the SOA on the Debt Free Wannabe part of this forum where you will get loads of support.

Going interest only may not be the best course of action, and may not even be something that your mortgage lender agrees to.

Reviewing the food shop, the utility bills, the TV costs, the mobile phones etc will save you real money anyway, rather than just moving debt from cards and loans to mortgage.

Good luck!

Thrugelmir

Don't expect your lender to necessarily agree to interest only. In order for you to sort out your other debts.

Pay a visit to the DFW board. As firstly you need to come to terms with your own finances. Drawing up a personal budget should be your first priority. Normally an eye opener as to where the money gets spent.

Incyder

Thrugelmir wrote: »

Don't expect your lender to necessarily agree to interest only. In order for you to sort out your other debts.
.

True.
When the recession hit my finances hard about March 09, i asked the Halifax the same thing. They said NO. To go interest only you need to have an endowment policy or something similar that would aim to pay your mortage balance off at the end of its term.

BUT they did help. I was not in arrears and I was 20 yrs into a 25 year term and was only 41 years old at the time, so they said I could ssssssttttttttrrrrrrreeeeeeetttccchhhh my existing balance over 22 more years if I liked.

This brought my monthly payment down to just under 33% of what it was.
I opted to take that offer as i knew I would be selling up in a couple of years and settling the debt completely.
It was a good decision and helped me have more available cash each month to live on.

JB72

our early repayment fee is £6471.51 and not really sure of our credit rating tbh?

somethingcorporate

JB72 wrote: »

our early repayment fee is £6471.51 and not really sure of our credit rating tbh?

Then you're absolutely right, it probably wouldn't make sense to find a new product.

Talk to your lender and take O4Us advice about the SOA, it is very useful.

Good luck.

JB72

sorry but whats LTV??

Lokolo

JB72 wrote: »

sorry but whats LTV??

Loan to Value.

So if you ara 80% LTV you are borrowing 80% of the value of the house.

JB72

whats the DFW board?

Lokolo

JB72 wrote: »

whats the DFW board?

Debt Free Wannabe board.

Its here: http://forums.moneysavingexpert.com/forumdisplay.php?f=76