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Interest only mortgage
ma701ss
Posts: 2 Newbie
Hi,
Our mortgage is fixed rate and reverts to 1.99% in a few months time. We currently owe £193k. My salary is £36k gross and my wife is now a stay-at-home mum, self-employed working some evenings from home earning a variable salary of around £400 per month. At least until she can return to work full-time I thought perhaps an interest only mortage would be a good option however with our current salaries it doesn't seem we would earn enough for the providers to consider lending. I don't think we can switch mortagage types with the same provider, it would need to be a new mortgage. If you have any advice on how to get a better deal, or ways around the salary check, I'd be pleased to hear from you. We're in a real bad way at the moment.
Thanks
Our mortgage is fixed rate and reverts to 1.99% in a few months time. We currently owe £193k. My salary is £36k gross and my wife is now a stay-at-home mum, self-employed working some evenings from home earning a variable salary of around £400 per month. At least until she can return to work full-time I thought perhaps an interest only mortage would be a good option however with our current salaries it doesn't seem we would earn enough for the providers to consider lending. I don't think we can switch mortagage types with the same provider, it would need to be a new mortgage. If you have any advice on how to get a better deal, or ways around the salary check, I'd be pleased to hear from you. We're in a real bad way at the moment.
Thanks
0
Comments
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How to get a better deal?
If your rate is reducing to 1.99% soon, that appears to be about the best you are going to get.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
You are blessed with a ridiculously cheap mortgage.
Don't do anything to change that.0 -
Theoretically it's possible to switch from repayment to interest only with the same provider - but only if you meet your lender's criteria for an interest only mortgage. The criteria will include things like having a repayment vehicle, or having an LTV less than 75% (or as low as 50% with some lenders).
How long is the term remaining on your mortgage? If it's very short, then extending the term might be a possibility - and that would reduce your monthly payments.
If the term is already fairly long, and if you can't afford a repayment mortgage at a rate of 1.99%, then I'm sorry to say you should consider whether you can afford to keep the house at all. Your lender might be prepared to let you switch to interest only while you sell it, so long as you can show that you are actively marketing it at a realistic price.0 -
Hi,
Our mortgage is fixed rate and reverts to 1.99% in a few months time. We currently owe £193k. My salary is £36k gross and my wife is now a stay-at-home mum, self-employed working some evenings from home earning a variable salary of around £400 per month.
Downsizing perhaps?
That's some debt to service. A rise in interest rates would be crippling I suspect.0 -
You may find if you speak to your lender, they may allow a short period on interest only until your wife returns to work (normally up to 6 months)I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Thanks everybody0
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