interest only mortgage

edlucher66

I guess I was hopeing it wouldnt be that much extra every month, I am planning to work more when both my kids go to school full time, at the minute I do 3 nighs a week. My mortgage company does not accept overpayments.

jackieblack

Then just put as much as you can afford (any small amount is better than nothing) in a separate savings account until such time as you can re-mortgage or move house, then use the lump sum to reduce the amount you borrow on the new mortgage.

holly_hobby

Then, do as Kings. suggests and instead separately save what you would over pay.

Given what you have said, I would go for low risk vehicles, such as deposit and savings accounts - which means that you will still have some access to the capital, with relatively low risk (NB - re FSCS protection, and just to top and tail thism, keep the money on deposit in each bank account, less than £85k - which I know sounds ambitious given your current circs !). If you choose notice products, you will also attract a higher return, and be disuaded from just continuing "dipping" in for non-emergency funding. As tax payers, make sure you utilise tax efficient products such as ISAs, and don't forget to consider National Savings too.

When your credit history is improved, and your incomes have increased (and depending on LTV), you may be able to remortgage away from Rooftop, to an alternative lender (using your accrued savings to also reduce the mge reqd) - whether you will only have the option of a repayment mortgage at that time (due to lenders quickly starting to withdrawn from new IO lending), remains to be seen, of which it may be still unaffordable ..... but time will tell for you I guess.

Good luck

Hope this helps

Holly

Thrugelmir

edlucher66 wrote: »

I guess I was hopeing it wouldnt be that much extra every month, I am planning to work more when both my kids go to school full time, at the minute I do 3 nighs a week. My mortgage company does not accept overpayments.

Perhaps time for a long hard think. As as time ticks by. The problem is compounding. As you've less and less time available to raise the capital. In effect you are renting the property. With nothing to show for the money you are paying out.

edlucher66

Hi yes thank you that is what I fear my husband does not want to sell up but I am beginning to think it is our only option.

kent_money_saver

Take a real long hard look at your finances, and see what you can go without.
Make a list of exactly what you are spending your money on,can you lose the mobile fone?, can you take a packed lunch?, could you downgrade the car and put the cash in the bank?, do you need a landline? ,and so on.
You would be surprised at the number of people i know who just leak money all over the place, and complain they are skint on the internet using their ipad 3, sitting on the sofa by dfs, stuffing a dominos takeaway(not describing you btw).
Ive started taking a flask to work and not buying starbucks coffee, i think im saving £60 pm, i cant beleive my wallet still has cash in it..
Then use the savings and put into a high interest savings account.
You say your company doesnt do overpayments, but do they do offsetting? just a thought..

Thrugelmir

edlucher66 wrote: »

Hi yes thank you that is what I fear my husband does not want to sell up but I am beginning to think it is our only option.

Better to tackle the issue now. When you've years ahead to rebuild. Than let time drift away. Decisions like this aren't easy to make. Its amazing how once done the stress is lifted. How much better you'll feel. You'll have the determination not to make the same mistake again.

edlucher66

But I dont know what to do for the best, I am aware time is ticking away and we are both age 42, so not young!

holly_hobby

edlucher66 wrote: »

we are both age 42, so not young!

Oi ... watch it !! 40s are the new 30s you know !! (and I'm sticking to that even if its not true !!)

Seriously, well at the moment you have some time - so lets not hit the panic button just yet.

You know that without a repayment vehicle, and any other realistic and achieveable plan, that selling up at some point will be the only option.

Yes, at the moment you are essentially just paying the equivilent of rent (with the added cost of upkeep and maintenance).

There was a similar recent thread, so you aren't on your own with no vehcile - but you need to start considering your options.

I am assuming that your Hubbs credit file is now clear ? (as any adverse will affect any mortgage or private rental application).

That being so, why not look at what you can afford on a repayment basis, and look at down scaling and purchasing a property on a C&I basis, with a repayment level that can be sustained longterm ?

At 42 you have at least a circa 23 yr term ahead , and I can't see you not securing a 25 yr term with the recent changes to state NRA applicable to you.

How about initially sitting down with a broker and essentialy working backwards on the figs, ie determine a mge budget, and work out how much generally that will provide as a capital sum - then you can look at what is obtainable for that. If you feel the max affordable mge won't provide a property suitable, then of course rental is the option ... which you are already tentatively considering.

Hope this helps

Holly x

edlucher66

Thank you Holly but feel about 80 years old at the minute , cant sleep worrying about this situation. My hubby really dosnt want to move he loves this house from the minute we found it, as I mentioned we were much better off when we moved here but then he was made redundant. I can only work 3 nights at the minute as my kids are young and I dont want to be a mum thats never around. He is very reluctant to share his business with anyone if he knew I was on here talking about this he would go mad!! I would love some financial advice. Many thanks so those who have posted replies but I think this is a no win situation.