Interest only and repayment mortgage - advice needed please

HelpingAFriend_3

Hello!

I am (as my name suggests) helping a friend to clear her myriad of debts. I am fine with everything except the mortgage.

Please can you help with the following?

Context

Mortgage is with Woolwich (Barclays)
Remain term is 7 years 3 months
Total outstanding is £33,000
of which £22,500 is interest only
current interest rate - 4.99%

My friend is behind on her payments by approximately 1 month and has an agreement to clear this on a weekly basis ending in October. Her income has been drastically reduced as hours have been cut by a third. She does not have an endowment to cover the mortgage on interest only once the policy reaches term.

Questions

1. Are you able to pay the capital off as well as interest on an interest only mortgage?

2. Given the length of time left; is it better to save what money she can (if she can get a new job) or get an endowment policy for the £22,500?

3. If she continues to pay the higher amount once the overdue debt is cleared, this would then become an overpayment. How would this affect her mortgage? I am guessing it comes off the repayment part of the mortgage,

4. Are there mortgages available for adverse credit history who have managed to keep their mortgage more or less up to date?


Thank you for reading and hopefully not shaking you heads in woe at my lack of knowledge

TTFN

Helping A Friend.... in her time of need

Senior_Paper_Monitor

Key question - how old is she ?

HelpingAFriend_3

Just turned 40 - why?

Senior_Paper_Monitor

My best guess is extending the term is her best bet (putting the whole thing on repayment) - almost certainly with her current lender is only option.

HelpingAFriend_3

Funnily enough that was what I suggested to her!

That then begs the question....

Has Barclays taken over the Woolwich portfolio as a holding measure until they are paid/viod/null?

Or

Are Woolwich mortgage holders now 'Barclays' mortgage holders?
If you get my drift?


Thank you so much for the help so far btw

Senior_Paper_Monitor

Woolwich is their mortgage arm - fully active.

Extended term on repayment is the only option I think might work - no such thing as endowments any more and unlikely to obtain any workable alternative vehicle at same cost