Next move ...

kingmidas1962

hi everyone - my husband and I finished our IVA in December (whoohoo!:beer:) and for the last two years have had our mortgage on interest only because we had to prioritise the IVA and I had a salary drop:mad:, so obviously the outstanding mortgage debt has not reduced in that time. I am now earning significantly more than before, and am wondering the best way forward to get back on track with our mortgage. Our mortgage company (the Leeds) will reactivate our capital and interest mortgage if we wish to do so, so they will recalculate the monthly amount and we will go back to making our payments on that basis.

I'm wondering though if this is the best way forward or whether there is some kind of saving/endowment scheme that would be better. Because of our IVA I'm guessing we would not be able to re-mortgage to our benefit although there is equity in the property. Our house is worth about £160000 and the mortgage outstanding is £129000

Any ideas?

R_P_W

Start by overpaying your current mortgage if you can afford to do so.

What APR % is your mortgage? Do you have any savings currently put aside as a contingency? If not try and put awat 3 months worth of income and then overpay after that.

StuC75

Calculate what the repayments would be to get back on track, then see about making overpayments for the difference.

The way it would be an 'un-offical' repayment mortgage - and be helping to build up your equity for moving mortgage when credit history is better..

Thrugelmir

kingmidas1962 wrote: »

I'm wondering though if this is the best way forward or whether there is some kind of saving/endowment scheme that would be better.

Unlikely. Better to switch a repayment mortgage and make up for lost time by making overpayments.