Mortgage Misery

Deanoml

Hi everyone, this is my first post so im really sorry if i have put it in the wrong place. I have a big problem with my mortgage. I have recently come out of a fixed mortgage with Northern Rock. The mortgage is a repayment only mortgage and when i took it out i was not advised to take out an endowment or similar to help pay off the capital. Additionally i have had to retire from work due to ill health and my income is now less than half of what it was. i am apparently not entitled to any benefits either. As it stands i have no way of paying off the mortgage which is just as big as it was 5 years ago and i don't earn enough to remortgage. Does anyone have any good advice?

RenovationMan

Deanoml wrote: »

Hi everyone, this is my first post so im really sorry if i have put it in the wrong place. I have a big problem with my mortgage. I have recently come out of a fixed mortgage with Northern Rock. The mortgage is a repayment only mortgage and when i took it out i was not advised to take out an endowment or similar to help pay off the capital. Additionally i have had to retire from work due to ill health and my income is now less than half of what it was. i am apparently not entitled to any benefits either. As it stands i have no way of paying off the mortgage which is just as big as it was 5 years ago and i don't earn enough to remortgage. Does anyone have any good advice?

How long have you got left with this mortgage before it reaches full term?

How much is left to pay on the mortgage?

Deanoml

There is approx 18 years to go on the mortgage. The outstanding balance is £163,157.00. My home is valued at around £135,000.00

CLAPTON

what do you mean 'repayment only ' mortgage

what is your income?
what is it's source

Deanoml

Sorry i meant to say Interest only - doh!

Joint income is now £21000 which is my pension plus wifes wages (part time) plus tax credits

RenovationMan

You're in a real pickle with your mortgage and all I can think of is that you try and make overpayments onto your mortgage until you get out of negative equity and then sell it. Normally with 18 years left to go on a mortgage I'd suggest that you hang on and wait for things to get better but as you are retired and on a fixed income, it's hard to see things improving.

Nope, all I can come up with is that you overpay as much of your free income as you can whenever you can to improve your situation.

Deanoml

Thanks for you time my friend... best i send the wife out full time!

RenovationMan

Deanoml wrote: »

Thanks for you time my friend... best i send the wife out full time!

That'd help.

Step one is to get out of negative equity. Once you've done that, it opens up other options.

_Andy_

Also worth posting a 'statement of affairs' on the DFW board so you can possibly see what you can cut back on. As stated above though, you need to concentrate on overpaying (perhaps take in a lodger to increase income?) as much as possible as selling or changing mortgage lenders isn't an option.