Interest Only Mortgage To Clear Debts

DontWorryBeHappy

but unlike many you could turn this around really easily, by making some short term adjustments so you are fortunate in that sense, although I can also see that paying for the needs and wants of four adults does rack up significantly
It has been really good to chat through this. I have decided that I will not change the terms of my Bradford and Bingley mortgage but if they are willing to allow me to only pay the Interest on my mortgage for two years, at the same rates, I will snap their hands off. I have tonight cancelled my Direct Debits relating to the Washing Machine Insurance and the PC insurances. I have increased the payment amount on Credit Card 2 (the one with the highest interest rate) by £25 on Microsoft Money (my bible). I will take a look at the Mobile Phones and the Utilities to see what I can do with those but it looks as though I am just going to have to sit it out for 2 years until my children are less depenant and the two big personal loans are repaid. In the meantime I will keep my fingers crossed that the BoE keeps the Interest rates as low as possible for as long as possible.

DontWorryBeHappy

Time for bed. Got to be up at 0545. I can't afford to lose my job. Thanks for all the help. I will respond further tomorrow.

DontWorryBeHappy

I have decided that I will not change the terms of my Bradford and Bingley mortgage but if they are willing to allow me to only pay the Interest on my mortgage for two years, at the same rates, I will snap their hands off.
I have just spoken with B&B and there is nothing they can do to change the terms of the existing mortgage so that avenue has been closed and therefore the question raised by this thread is now irrelevant.

Many thanks to all of those who offered advice. While I was on the phone to B&B they confirmed that I have 11 years and 2 months remaining on my mortgage and my current interest rate is 2.59% (tracking at 2.09% above BoE rate). I forgot to ask how much I owe but I think it is around 192k.

Thrugelmir

You do have one further option. Sell your house and realise the equity. Easiest way to a clean break and start afresh.

Interest rates may well rise this year (.5% -.75% ?) and more into the short term future. So its unlikely that in the short term its going to get any easier.

getmore4less

DontWorryBeHappy wrote: »

I have decided that I will not change the terms of my Bradford and Bingley mortgage but if they are willing to allow me to only pay the Interest on my mortgage for two years, at the same rates, I will snap their hands off.
I have just spoken with B&B and there is nothing they can do to change the terms of the existing mortgage so that avenue has been closed and therefore the question raised by this thread is now irrelevant.

Many thanks to all of those who offered advice. While I was on the phone to B&B they confirmed that I have 11 years and 2 months remaining on my mortgage and my current interest rate is 2.59% (tracking at 2.09% above BoE rate). I forgot to ask how much I owe but I think it is around 192k.

OK not quite as good a deal as you thought but OK, there are a couple of options that might just better this but the debt levels might make those out of reach.

At least the mortgage numbers now stack up.

£1645pm over 11y2m @ 2.59% around £191240.

Now do the same for all your debts so you MSMoney actualy reflects reality and you can make a plan.

Mobiles, I used www.e2save.co.uk (part of carphone warehouse) for cashback deals without problems.
You used to be able to get free deals but there are still plenty under £10pm

Get the kids to do there own cashbacks by giving them £10pm each and they can keep the change is they do better. (That way it limits your liability)

also check http://www.hotukdeals.com/mobiles/deals/hot

Trollfever

Annual income twenty pounds, annual expenditure nineteen six,
result happiness.

Annual income twenty pounds, annual expenditure twenty pound ought and six,
result misery.

Charles Dickens, David Copperfield, 1849
English novelist (1812 - 1870)

Niksan

AA Breakdown Cover £30

You could save a bit on this if you went with AutoAid. Not much but it all adds up, and if that AA thing is per month you're saving nearly 11 months of payments.

getmore4less

Niksan wrote: »

AA Breakdown Cover £30

You could save a bit on this if you went with AutoAid. Not much but it all adds up, and if that AA thing is per month you're saving nearly 11 months of payments.

If the landy is not used for work then breakdown cover is not so essential just need a mate who can tow you home.

getmore4less

another thought what about joining the mortgage free wanabees to keep on track

http://forums.moneysavingexpert.com/forumdisplay.php?f=98