interest only mortgage and no endowmnet

fedupandpoor

Hi
We have 15 years left on our £214000 mortgage with Kensington. 3 years ago we moved it to an interest only mortgage because things were tight. they are even tighter now and we still cannot put it back onto repayment. We pay £669 per month when i ask last week how much it would go up on repayment i was told 1589!!!!!! i asked it we could extend the time period but was told kensington dont do that. We have never missed a payment on this mortgage (5years) but our credit rating is zilch so changing is not an option.
my main concern is what happens at the end of 15 years????? i have started to really worry about it.

_Andy_

At the end of the term you'll have to sell up to pay off the mortgage, assuming you dont put into place another plan in that time/change to repayment

fedupandpoor

thanks, house worth at mo about £260000 so the future is bleak

_Andy_

If you're already finding the payments a struggle have you thought about cutting your losses and selling up now?

fedupandpoor

not an optionn

poppy10_2

fedupandpoor wrote: »

not an optionn

Why not? .

fedupandpoor

we would have to rent and the rent would be more than the interest only mtg, have 3 kids and i work from home and had a room built years ago to do my work from. we manage to pay all priortiy bills on time every month we just are not in a position to nearly tripple our mortgage payments. i was concerned what would happen after the 15 years are up. i will have to sort (in process) out our credidt rating and try to re mortgage at a later date

Indispensable_Hobbes

Can you review your account with them?
Is down sizing with a mortgage not an option?

fedupandpoor

house is small already, need the rooms i have for my work. wont get another mortgage, credit rating zilch and husband earning less than use to. we have investigated all options thanks though

RenovationMan

Your only option seems to be to increase your disposible income and start making overpayments. You can do this either by taking on a part time job or get better paid jobs (difficult I know) and by reducing your outgoings (go onto the Debt Free Wannabe board and do an SOA to see if you can make any cutbacks). Even overpaying just £50 per month off the mortgage will put you in a better position.

15 years is a long time off and things can change a lot over that time.

shortchanged_2

Well the the advice you would get from many property rampers on here would be, 'What's the worst that could happen, you have to sell your house at the end of the term.'

Sorry but you sound like one of the few/many who were sold the dream of soaring house prices.


The only advice I could suggest is to sell up, but as you say you can't do that chances are you will have to sell up at the end of the mortgage because if you are struggling to pay the interest only payment now of £669 a month, I don't see how the hell you are going to raise £214,000 in 15 years.