End of 5yr Fixed & Negative Equity

Engeroosi

Nobody is saying your a bad person, but when you take a mortgage out you should be prepared for the worst, ie losing jobs etc. If you have to both be earning the salary in your jobs to afford the mortgage and you cant take any paycuts then the mortgage is too big.

getmore4less

Amiz87 wrote: »

So just to confirm, does that mean that the house will not be valued? if this is the case would we have the opportunity to increase the mortgage by a couple thousand just to clear some debt?
we have always made payments on time and in full, but having paid interest only does that go against us?

Amiz87 wrote: »

sorry to go on but i feel i have to justify myself, as we are not bad people who have used credit cards/loans etc to pay our way through. in fact the only debt we have is a £400 overdraft. we paid of our last bit of debt last year (saving us £400 a month) so considering the circumstances i think we have done bloody well.

I know this has nothing to do with my question but as others seem to be more interested in my finances i thought it best to explain.

so yes when we get our new mortgage (jan) next year both me and my fella will be on full wage again and will start paying full repayment!

Don't have to justify anything just give the facts.

Questions, info ,statements based on the the information given which was looking to extend the mortgage for a couple of thousand of debts, while on interest only and negative equity.

Even without the debt the situation is not much different

Interest only, negative equity, you are stuck with your current lender and property, they may offer a new deal or insist you stay on the followon rate(which may be SVR or a base rate tracker), but your main problem is you still need to sort out a payment vehicle, start overpaying or change to repayment.

Edit:
Idealy you should stay on I/O and overpay as muchas possible, this gives the option ifthings go sour again you will have theoption for lower payments.