In need of ideas to reduce mortgage payment?

biz82

Wh05apk wrote: »

Abbey will only allow interest only upto 75% above that, which you are, the whole mortgage will need to be repayment.

I think your only options are to get the other party to help you out short term, take in a lodger, or increase your income, which doesn't sound realistic if you are studying?

Thanks I guess this is the most sensible and logical advice. If I can manage to get to the end of the current fixed period I'll leave Santander and never use them for anything again.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

Thrugelmir

biz82 wrote: »

I'll leave Santander and never use them for anything again.

Don't expect other lenders to be any more understanding. If you intend to play your own game in the future make sure you have a contingency plan.

poppy10_2

biz82 wrote: »

However what are the valid reasons for new interest only applications other than wanting to have either lower monthly payments, or for it to be more flexible so that you don't struggle to keep on top of things

A valid reason for taking out an interest only mortgage might be if you have a repayment vehicle such as an investment that is likely to give you a greater return in the long run.