only paying the interest on a mortgage ?

emmz29

hi please can u offer me some advice .

i currently have an interest only mortgage with northern rock , i have tried to get the mortgage on interest only twice now without success , my payments are due to go up in december to a rate i cannot afford .

can u tell me how i would stand if i continue only to make the interest payments on this mortgage ?

my partner is moving in with me next july and then i will be in a better position for the mortgage to be raised , but at the moment i know i cannot afford the repayment and this will put me into even more debt than i already in

thankyou for any advice offered

_Andy_

emmz29 wrote: »

i currently have an interest only mortgage with northern rock , i have tried to get the mortgage on interest only twice now without success ,

?????.....

Thrugelmir

emmz29 wrote: »

i currently have an interest only mortgage with northern rock , i have tried to get the mortgage on interest only twice now without success , my payments are due to go up in december to a rate i cannot afford .

Sounds as if the mortgage is totally unaffordable. So you need to consider other options. Perhaps taking in a lodger to generate some income.

emmz29

i have 3 children and no room for a lodger

_Andy_

You stated in the original post that the mortgage is IO but they won't allow you to change to IO. Can you clarify what the situation actually is?

emmz29

i am currently on interest only my payments are due to go up by another 350 pounds a month from november , i have requested twice to have the mortgage remain on interest only but northern rock are refusing to help me ,

iron_bored

Surely the mortgage will remain interest only, it's just that the interest rate is rising. I don't mean to sound rude but are you sure you understand what an interest only mortgage is and how the payments can vary? I understand that you may not be able to afford the new payments but I'm quite confused as to what "requests" you have made to NR?

_Andy_

emmz29 wrote: »

i am currently on interest only my payments are due to go up by another 350 pounds a month from november , i have requested twice to have the mortgage remain on interest only but northern rock are refusing to help me ,

Ok so to clarify, it's currently interest only then from next month is reverting to capital repayment?

emmz29

yes andy thats right , with all of my other outgoings i will be 60 pounds down each month to cover all my bills this does not take into account my children , doing anything with them , or running my car , going out , which i rarely do anyway , northern rock are saying i can afford it which i clearly cant without getting into more debt . sorry im not really up on mortgages or where i stand which is why im on here
thankyou

jungle_jane

It sounds like you have a fixed rate of interest (an attractive one) that is now coming near to the end of its term and what they are going to do is to revert you back to their SVR (standard variable rate). And that rate is higher.

Have they sent you anything in writing? What does the letter say exactly?

emmz29

i have sent a list of all my direct debits twice , which clearly shows i have no money for the mortgage to go up , the letter states ,that they are unable to proceed with my request and that my payments will continue to go up in december . i rang NR this morning who still refuse to see i cannot afford this . they have said , get a lodger , rent the house out or sell it . i live in the north where houses are not selling at present my neighbour has had his house on the market for a year with 2 viewings and not sold it yet , what i could get for renting the house out would still not cover my repayments and i would still need somewhere for me and my children to live . i am now looking into remortgaging my house , i have 80 percent loan to value in the house and need a good rate in order to still afford the payments on my house . i asked NR what would happen if i continued to pay my interest only payment and not the repayment part of the loan , they say month one i will recieve a letter with no action , month two i would get an adverse credit rating and month 3 they would start legal proceedings