Mortgage Guidance

Rocket

In Jan 06 my mortgage was as follows:

£66566.70 - interest only - 6.84%
£34998.42 - repayment - 6.84%
total £101564.95
with 11 years 1 month left to run

We decided to purchase a holiday home and took out a secured loan of £71419.93 again our property over 25 years, with a view to selling holiday home a few years later, getting back what we put in plus possibly some profit.

As we were finishing a fixed rate we changed everything to interest only along with enjoying the benefit of the low interest rates for the past few months or so and no I did not save the money we were saving in mortgage payments, we possibly like most others have spent it.

Now I have 6 years and 7 months left on the £101564.95 and approx 20 years on £71419.93.

I have a policy due to pay out approx £28000.00 in a couple of years and as and when we sell the holiday home we will get some return but not all that we borrowed so will be out of pocket but hindsight is a wonderful thing.

Just looking for some advice/guidance on what I should do next. Ideally would like to go back to how it was with the repayment/endowment split but obviously now have to add on the fact of the £70k we borrowed (and wish we had'nt) and therefore am not in the position to pay it all of in 6 years that we have left.

Any advice would be greatly appreciated, I know I have been silly in doing this in the first place but now looking to try and get back on track.

Thanks in advance

Wh05apk

What are your ages, and property value? I am assuming your income is more than suffiicient to justify this size of mortgage?

Dependig on your LTV, you may be able to put some on interest only, repayable by sale of your holiday home - lenders are far stricter now, do you have any other repayment vehicles? Failing that I suspect you will need to extend the term to keep it affordable.

Rocket

Thank you for replying.

I am 39 (40 in August) my Husband is 51.

Property value approx £300k

Just not sure where to start looking for the best deal.

Combined salary of £51k per year excluding bonus of approx £4000.00

My parents left their property to my sons which is going to be rented out from April this will generate approx £1200.00 per month rental income, need to put some away for maintenance for the house but apart from that could put rest towards paying off mortage but do not want to rely on this as if we do not have any tennants for some reason then no rental income.

This is a complete mess and really want to get on top of it, my mortage is with NRAM therefore does that mean my ERC is now waived after reading recents reports on here or have I misunderstood?