interest only mortgage and no endowmnet

silvercar

shortchanged wrote: »

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.

Which all sounds very negative. Putting a positive spin on it, you are now paying an interest only mortgage and living in a property that you wouldn't be able to afford to rent. So it is your best option for the moment.

If you need to sell in 15 years then so be it. In the mean time you have lived in your own home, with no pesky landlords to deal with, no risk of being evicted with 2 months notice, no worry over having to move home continually.

15 years is a long time, you may have more money by then or you may need to review nearer the time. Provided you can afford to keep up with repayments now and are aware that this issue won't go away, live with it.

shortchanged_2

silvercar wrote: »

Which all sounds very negative. Putting a positive spin on it, you are now paying an interest only mortgage and living in a property that you wouldn't be able to afford to rent. So it is your best option for the moment.

If you need to sell in 15 years then so be it. In the mean time you have lived in your own home, with no pesky landlords to deal with, no risk of being evicted with 2 months notice, no worry over having to move home continually.

15 years is a long time, you may have more money by then or you may need to review nearer the time. Provided you can afford to keep up with repayments now and are aware that this issue won't go away, live with it.

But with the added bonus of having to pay for maintenance and repairs yourself.

RenovationMan

shortchanged wrote: »

But with the added bonus of having to pay for maintenance and repairs yourself.

Yes, a new roof and boiler every three years according to some on the economy board.

Thrugelmir

fedupandpoor wrote: »

my main concern is what happens at the end of 15 years????? i have started to really worry about it.

Then you should start planning ahead now. As the problem isn't going to disappear.

Are you currently putting money aside into long term savings?

967stuart

I would honestly go and see a mortgage adviser in the flesh and get them to look at your situation and see if there is an option to get onto another lender with a longer term and payments that you can actually achieve.
I can't see how you have a 0 credit rating if you are currently paying a mortgage.
Well done for tackling it now, as said - it wont go away, so time to act.

Thrugelmir

967stuart wrote: »

I would honestly go and see a mortgage adviser in the flesh and get them to look at your situation and see if there is an option to get onto another lender with a longer term and payments that you can actually achieve.

Would appear that at current income levels the mortgage is unaffordable on a repayment basis. So remortgaging isn't an alternative.

So while interest levels remain low, maintaining the status quo seems the only option. As the repayment is cheaper than paying rent.

gandalf16

Depending on your age you could always try remortgaging to another provider & extending the term to make the Capital repayments more affordable

Wh05apk

Depending on your loan to value, you may be able to remortgage to an interest only deal elsewhere, on the basis that in 15 years or whenever, you will sell and live in a tent!

What is the issue with your credit, do you simply not have any, or is what you have bad?

Evilm

Wh05apk wrote: »

Depending on your loan to value, you may be able to remortgage to an interest only deal elsewhere, on the basis that in 15 years or whenever, you will sell and live in a tent!

What is the issue with your credit, do you simply not have any, or is what you have bad?

Even for a very low LTV that isn't considered an acceptable repayment plan anymore.

RenovationMan

I've been wondering about your issue. you say you have 15 years left on your £214000 mortgage, which means, if you had the standard 15 years, that you have been living in the house for 10 years and have had a repayment mortgage over that time.

If this is the case, then you must have had a colossal mortgage, especially for 2001 and especially as the house was bought pre-boom. Something doesn't add up. Have you been consolidating debt via your mortgage?