Mortgage and loan getting ontop of me

fredy34

First off thanks to everyone as ive got my credit card bill from £2.5k down to £500 in the last 18 months.

At the moment im on an interest only mortgage of £85k this wasnt a great deal as it was a 100% mortgage. My current interest rate is 6.15%.
I also have an 8k car loan - £160 a month.

I dont have any savings at all but my house is now worth £130k. From the research i have done (im not an expert) im pretty sure i could do better else were. My questions are
I can afford either Interest only and the loan payment or repayment with the loan put in on the mortgage. I take it i would be better with the first option?
Also as i dont have any savings im a bit confused as to how a re mortgage works? technically i still dont have a deposit?

Really hate mortgages. any advice much appreciated

herbiesjp

fredy34 wrote:

First off thanks to everyone as ive got my credit card bill from £2.5k down to £500 in the last 18 months.

At the moment im on an interest only mortgage of £85k this wasnt a great deal as it was a 100% mortgage. My current interest rate is 6.15%.
I also have an 8k car loan - £160 a month.

I dont have any savings at all but my house is now worth £130k. From the research i have done (im not an expert) im pretty sure i could do better else were. My questions are
I can afford either Interest only and the loan payment or repayment with the loan put in on the mortgage. I take it i would be better with the first option?
Also as i dont have any savings im a bit confused as to how a re mortgage works? technically i still dont have a deposit?

Really hate mortgages. any advice much appreciated

Before looking to move - find out from your current lender if you have any penalties to pay if you were to move away. See what they could offer you.

Leon_W

fredy34

You're in a great position.

You do have a deposit but it's tied up in your property. If you were to remortgage you wouldn't need 100% would you ? No. You only need to remortgage to about 65% Loan to Value which is great news for you as lenders will be prepared to offer their very best rates at such a low LTV !

Pay off the debt with the highest interest rate first.

PanjabiMunda

Hi

are you interestd in selling your home aqnd having ALL your debts cleared?

PanjabiMunda

remortgage as u got plenty of equity, clear your loans then start fresh on 1 payment instead of your loan AS well

fredy34

took the remortgage advice and boy was it good advice!!!

So am on 2 years fixed at 4.9 interest only till i get loan paid off. Mortgage is down to £340 and i moved my life insurance saving another £10!

all in im now saving £100 a month.

Thanks

f