Launch new investment or find another solution?

steveinkent

Hi

Hoping someone can help me out with a little advice. Here's the situation I'm in.

1. I have a £145,000 mortgage with Santander, which has 15 years left and is interest only.
2. Some years ago I cashed in my endowment policy for the mortgage, as I was unable to work for some time due to having CFS/ME and needed income in order to support myself while unable to work.
3. I have £40,000 of unsecured debt (accumulated during the same period where I was unable to work due to illness) which I'm repaying at £600 per month in a debt management plan.

I'm very aware that I should be putting aside at least £600 per month in order to build up a fund that could repay the mortgage in 15 years, but with the DMP I can't manage that currently. And ideally, I should be putting aside another £600 per month for some kind of pension fund, again, that's beyond my means right now.

I'm concerned that even if I continue with the DMP in order to get rid of that debt asap (approx 5 years from now), that £600 per month won't cover the investment needed in order to settle the mortgage. Should I should perhaps seek to switch to a repayment mortgage on a fixed rate asap, and maybe extend the mortgage term? Or is there a plan c somewhere?

Any help or advice is very much appreciated.

Thanks so much
Steve

Linton

Suggest you post on the debt-free board. That is where people with the expertise and experience of managing debt congregate.

If you sold the house and rented for a while would there be enough equity to clear the debt? The longer you leave a debt the more money is wasted in interest charges. Just a thought.