Help needed with mortgage problem

margaretrose

Hoping someone can give me some advise please.
My story! Following my divorce 5 years ago my ex signed house over to me. There was some equity in it at the time. He also left me with a lot of debt.
Due to my situation at the time, going from 2 incomes to 1, being left with other debts and my daughter to support I re-mortgaged to an interest only mortgage.
I have now paid off all my debts, am 54 yrs old, with a mortgage outstanding of 81k due to finish in 2012 and have nothing in place to pay this at the end of the term. Also, very little equity, if any, due to the current climate. In short I am likely to become a homeless pensioner!!!
My payments are £200 at the moment and having worked out my finances i could afford a further £200 per month but no more.
I know you probably think i have been foolish but my priority at the time was to keep a roof over my daughters head and the interest only payments are far cheaper than selling and then renting.
Is there anything i can do at this point to prevent my becoming a homeless pensioner? Any suggestions would be appreciated. thanks.

originalmiscellany

Sorry to hear about your predicament margaretrose.
Qns: Do you have a salaried job? If so how much?
54 is young, you should be able to get a re-mortgage I think...
Do you have any savings?

It does look a little grim I have to admit, but please note I am just a layman - some Mortgage advisors should be around soon to give much better advice than I can.

DVardysShadow

To pay this off with interest of 5% by the age of 65 requires 837 per month. Or 622 to pay it off by age 70.

I think you need to make a decision now as to whether that level of repayment is sustainable and if it is not, then you need to downsize. If you decide to do this, the sooner you get going on it, the better - there would be very little point in paying lots of interest on a mortgage for a property you will not ultimately keep. For £400, you could be good for a mortgage of 40,000 paid off by 65 - but you do need some slack for interest rate rises.

If you were paying more than £200/month to your debt clearance project, you could consider sustaining that as repayments to the mortgage.

margaretrose

Qns: Do you have a salaried job? If so how much?
54 is young, you should be able to get a re-mortgage I think...
Do you have any savings?
.................................................................................

I have a cash isa, £5250
other savings of approx £2000
part time job - salary £9200 pa
and an annual pension (i.m semi retired) £8800pa this reduces to £3300 pa in 12 years.
In my current job I could work past normal retirement age if i needed to. (dont particularly want to but needs must).

theoretica

Have you asked on the debt-free-wannabe board here about how to cut your outgoings to the minimum so you can pay off the mortgage as fast as possible?

Has your daughter moved out? Do you now have space for a lodger to give you more income and help you pay off a mortgage?