need to reduce mortgage payments somehow...

stressedgerty

Hello everyone,

I was just wondering if anyone has any idea what our options might be? My husband is self employed and work is just none existent. We have never known things to be so bad. We have lived in our house for over 10 years and I love it! I don't want to have to sell up. I suppose we are looking for a short term reduction in outgoings, until things hopefully pick up. We have a mortgage with Nationwide, which was a 5 year fix and this is due to end in August. We are fixed at 6.09%. We owe about £80,000 and 10 years term left. Our house is worth around £220,000. I was wondering if we would be allowed to change to repayment only, or extend the term, or even a payment holiday for a few months if this is permitted?? Does anyone know what we would be allowed to do in this situation? I must add that we have never missed a payment or been late ever........times are bad. I worry that if I ring Nationwide to ask we may be penalised in future?? Any advice very gratefully received. Thanks for reading

casualwalks

Get a lodger?

jaysb

yes phone them - if you've made previous overpayments then you may be able to take a payment holiday, or they may let you switch to interest only for a short term. If you have any endowments then you may also be able to take a payment hol from them - phone them and they will advise, or you may be able to cash in.

Good luck !

stressedgerty

Hi, thanks for the post, but we haven't got the spare room. I just need to reduce payments for 3-6 months (I hope!!!!).

stressedgerty

Thanks Jaysb too. I am a bit scared to ring them.........but I suppose I should!! All this is new to me. We have always paid everything ok.......Husband is very stressed and feels he is letting us down, so I am pretending it will all be OK!!!!! Glad you think there are options.....

dimbo61

Read the mortgage paperwork ??
What does your mortgage revert to at the end of the fix ?
I hope its the BMR of 2.5% or 2% above base
It might be the SMR/SVR which is 3.99% and still cheaper than what you are paying now.
So dig out the paperwork or ring the mortgage centre and have your mortgage account number handy.
This will I hope reduce your mortgage payments

Dave_Ham

Spot on..

Roll on August when things get a whole lot better for you rate wise and I think you will be amazed how much it is going to reduce your monthly payment by.

Call them now, do not wait. Nationwide are a responsible lender and will not mark your card or patronise you on the phone. They have an option to speak to someone if you are struggling.

If you can sell anything you have on Ebay/Boot Sale, pull in a short term favour or do anything to get you to August the world will be a better place. Ask them what your monthly payment will be in August and they will tell you. If nothing else if gives you a target.

They may give you 3 months on interest only but given your remaining term, I cannot see this reducing your payment hugely.

Call them and ask any questions you have here.


Good luck

opinions4u

Ok, call them, but do so as part of a much wider review of your outgoings.

Some people just focus on the mortgage payment (as it's usually the biggest bill) but reducing other outgoings that won't impact the ownership of your home is often a better way forwards.

A payment holiday is unlikely to be offered for financial difficulties.

Switching to interest only short term should reduce your monthly payment by £450-£500. But they don't have to agree to this.

Agreeing to a reduced payment (either higher or lower than interest only) is another option they could consider.

A question to ask is "how will this affect my credit file?"

How else can you cut back?

- turn the heating down and wear a jumper
- turn lights off
- turn telly off standby
- shower instead of bath
- build meals around rice or pasta rather than meat
- basic foods instead of branded foods
- walk instead of drive
- eBay sale
- paper round instead of pocket money
- part time work (bar, supermarket etc)

stressedgerty

Hi, thanks for your replies. I really appreciate it. At the end of the fix my rate does go to 2.5% - so much better rate. My payment reduces by £160 ish a month. I did speak to them in Jan when I got my mortgage statement (and husband had work!) as I wanted to continue paying the same and pay it off quicker!!! I have cut back all none-essentials anyway - pension payments, kids savings, started shopping in Aldi and reduced food bill, recently changed gas and electric supplier etc. There is nothing else I can do. I will call Nationwide and see what they have to say before we get to dire straits (sp??)......hopefully work will pick up. Thanks