My mortgage nightmare - where do I start?

ozbride

Hello,

I am after some positive advice please.

After some very bad financial advise and personal choices I find myself with two mortgages.

1 - for my own home owing approx £140k (lifetime tracker A&L)

2- for a buy to let owing approx £108k (standard variable rate Northern Rock, house now in negative equity so have no way of remortgaging)

Both mortgages are interest only and I have been overpaying my own home mortgage by approx £100 per month.

Am I doing the wrong thing, should I be overpaying the buy to let mortgage first as it is the most expensive one? I think I am overpaying my own home because of emotional reasons ie it is my home and I want to pay it and keep it whereas the buy to let house was only ever meant to be an investment :eek:

I have sleepless nights over this so I am trying to keep positive and think about all the good things I have in my life ie my lovely husband and son.

What would you advise me to do?

Oz

kabads

My initial response is that your own home is priority. Pay that one off first. Can you switch your own mortgage over to repayment mortgage. Paying off £100 a month isn't a great amount and will take a long time to pay off the capital of £140k. Or, instead of converting it, can you pay off more?

Is the buy to let property let out? If so, are there costs that can be cut (i.e. management fees from a estate agent or management company) there which mean that you can make more of a return to meet the monthly payment?

Unfortunately, the only hard and fast rule about paying a mortgage off is to pay it off. There are no magic tricks with mortgages. If you borrow the money eventually you have to pay it off, either through cash, or through the sale of a property.

whitewing

You could also go on the Debt Free Wannabe forum and post up your statement of affairs (SOA) and they may be able to help:

https://forums.moneysavingexpert.com/discussion/107280