Options....

freckles30

Coming to the end of a 5 year fixed interest only. Sadly due to getting into some arrears within the last 2 years, they are unwilling to move us onto repayment fixed, so our only option is to stay on interest only at a variable rate for 2 years. The "variable" word scares the life out of me, as I know nothing about the rates and whether they are likely to go up within the next 2 years? The monthly amount will be the same, so we will be as we were, not as we wanted to be - but if the rates go up, we will be in trouble.

We have discussed selling, but to be fair, this probably doesn't seem like a sensible option. I'd like to rent it out, go and stay with family for a year and save our mortgage payments, but we don't have that option, so we basically have to stick with it. Interest only sucks, we did it cos I wasn't working when we got the mortgage (young children) and planned we'd move onto repayment at this time - but obviously due to our financial nightmares, we are now stuffed for another 2 years and I'm really quite worried.

On the plus side, now I'm earning a decent (ish) wage (after being in poxy jobs until the kids started school) we are actually making headway with our debts, but the one thing we wanted sorted was the mortgage

Any advice?

GMS

When were the missed payments?
Any adverse credit such as defaults or CCJ's?
How much do you owe on the mortgage?
What is the property worth?
Whai is your income?

beecher2

I'd forget spending £1k on a holiday

https://forums.moneysavingexpert.com/discussion/3150876

Post a Statement of Affairs on Debt Free Wannabee and get help in tackling your debts. You will get advice on how to cut down expenditure (ditch Sky, mobile contracts etc) and how to boost income (get a lodger, second job), while the other forums can help you cut down on food expenditure.

freckles30

Jeez, I thought posting here would be helpful, not inviting people to snoop on what else I'm posting. As you will see from the other post, the 1k is flights to see my parents as they live abroad. I see them once a year and I'm not willing to cut that out and as I didn't mention that on this thread, I find it frustrating that I'm having to talk about it!!

I have done an income/expenditure on another thread - not sure how to post a link to it, but I'm sure someone else can help!

The missed payments were last year, only two, and have paid half of one month off, so just the remaining 1.5 months to go. The mortgage company said that the account must have been run perfectly in the last 24 months for them to change our mortgage into repayment. Credit is shot due to this, no CCJ's.

freckles30

GMS wrote: »

When were the missed payments?
Any adverse credit such as defaults or CCJ's?
How much do you owe on the mortgage?
What is the property worth?
Whai is your income?

Sorry, I didn't answer all of the questions.

Adverse credit due to the mortgage and a few defaults on my partners side (the mortgage is in his name only).

Mortgage is 163,000, secured loan 20,000

House is worth around 200,000 - was valued at 217,000 3 years ago, but going by current house prices, I think 200,000 is about right.

Joint income around 3000.

ColinFishwick

You posted on a open forum your going to get things posted on here that you may not agree with

freckles30 wrote: »

Jeez, I thought posting here would be helpful, not inviting people to snoop on what else I'm posting. As you will see from the other post, the 1k is flights to see my parents as they live abroad. I see them once a year and I'm not willing to cut that out and as I didn't mention that on this thread, I find it frustrating that I'm having to talk about it!!

I have done an income/expenditure on another thread - not sure how to post a link to it, but I'm sure someone else can help!

The missed payments were last year, only two, and have paid half of one month off, so just the remaining 1.5 months to go. The mortgage company said that the account must have been run perfectly in the last 24 months for them to change our mortgage into repayment. Credit is shot due to this, no CCJ's.

GMS

freckles30 wrote: »

Sorry, I didn't answer all of the questions.

Adverse credit due to the mortgage and a few defaults on my partners side (the mortgage is in his name only).

Mortgage is 163,000, secured loan 20,000

House is worth around 200,000 - was valued at 217,000 3 years ago, but going by current house prices, I think 200,000 is about right.

Joint income around 3000.

No other lender for you with those figures. You will need to negotiate with current lender as best you can.

Which lender(s) are you with?

freckles30

Well their final offer is variable interest only for 24 months - my main worry is whether the interest rate is likely to go up? I know this is an impossible prediction.

GMS

If that is all they are prepared to offer then you are stuck unfortunately.

Is the mortgage and secured loan with the same lender?

Good luck with it.

freckles30

GMS wrote: »

If that is all they are prepared to offer then you are stuck unfortunately.

Is the mortgage and secured loan with the same lender?

Good luck with it.

No, the secured loan is with another company found through our original broker, as we didn't meet the requirements for the mortgage company to lend at that time (owned for less than 9 months I think it was).

freckles30

GMS - A quick question - how easy is it for another person to be added to the mortgage? And is this only possible at the end of a fixed term? My partner has it in his name - advised by the broker originally as I wasn't working, but now I am working, would it be worth me going onto the mortgage? From a credit perspective, is this likely to worsen mine as the mortgage is in arrears....or help his as mine is significantly better....but not great by a long way!