Is this possible?

TWDgirl_2

Hello all, just a quick question.

Our mortgage is up for renewal in janurary, I am the first to admit I know nothing about mortgages at all.

Would it be possible for us to go with another mortgage provider in janurary, but change the terms of it, such as paying less than we are now but over a longer period of time?

Hammyman

I assume you're on interest only? The idea of a mortgage is that at some point you pay it off. If you don't, all you're doing is basically renting and whilst you can pay over a longer term and reduce monthly payments, you are just increasing the overall amount you end up repaying.

GDB2222

Yes, it may be possible, but it would depend on a lot of information that you might not want to divulge. How much do you need tp borrow, what's the property worth, how much do you earn, etc?

TWDgirl_2

GDB2222 wrote: »

Yes, it may be possible, but it would depend on a lot of information that you might not want to divulge. How much do you need tp borrow, what's the property worth, how much do you earn, etc?

We dont want to borrow money, more that we would like to pay a bit less each month on the mortgage over a longer term.

In a nutshell the house isnt selling, so we were thinking of trying to reduce the payment, move in with my parents for a while and take the house off the market. We are paying £450 pm at the moment and we feel stuck here in a house we cant sell, a lower monthly payment (for the time being) would enable us to move out, cut utilities off etc

GDB2222

You don't think that the mortgage is 'borrowing' then?


Why would you leave the house empty? Why not rent it out?

moneybunny123

I imagine (and for arguments sake let's say that what you're suggesting is possible) that anything you save in monthly mortgage payments, you'll shell out in increased insurance payments for having an unoccupied property. You'll still have to make 50% council tax payments also.

TWDgirl_2

Nobody would rent it in the state that it is in at the moment, the last thread I made was about things that need finishing off in the house, and we do not have the money to do these things, taking it off the market whilst we save a bit of money would give us a chance to finish the house off before putting it back on the market, dont really see much of a point in keeping it on if nobody wants it. Plus we dont want to rent it out as we have no experience in doing so and we dont have the money to give to letting agents/money for repairs etc

Yes a mortgage is borrowing but what I meant is we dont want an actual loan of money into our hand we just want to pay less on the mortgage and increase the number of years we would pay it off if its possible.

GDB2222

TWDgirl wrote: »

Nobody would rent it in the state that it is in at the moment, the last thread I made was about things that need finishing off in the house, and we do not have the money to do these things, taking it off the market whilst we save a bit of money would give us a chance to finish the house off before putting it back on the market, dont really see much of a point in keeping it on if nobody wants it. Plus we dont want to rent it out as we have no experience in doing so and we dont have the money to give to letting agents/money for repairs etc

Yes a mortgage is borrowing but what I meant is we dont want an actual loan of money into our hand we just want to pay less on the mortgage and increase the number of years we would pay it off if its possible.

So .... How much do you need to borrow, what's the property worth, how much do you earn, etc?

You don't need to give that info, but I don't see how to answer you without it. Having said that, you are unlikely to be able to change over to a new lender unless you have around 15-20% equity in the house, ie the mortgage is 15-20% less than the house value. If not, it reduces your options to whatever mortgages are available with your existing lender. So, why not ask them?

I can see now that you need to do something to break the current impasse. Can you borrow some money from friends or family so as to be able to get the house finished enough to be able either to sell it or let it out? Because moving back with mum and dad is not going to save you much. Some councils charge 90% of normal rates for empty properties if they are furnished.