help with interest only mortgage

smokiejoe03

hi , i was unfortunately given wrong advice and put on an interest only mortgage to get myself out of trouble for a couple of years , and then to get back on a repayment mortgage once things had settled down, but in the meantime , the banks crashed , we came off a fixed rate , and costs were rising fast, which forced me to go to a debt management company with our credit cards, but since trying to get back onto a repayment mortgage, our credit score has plummeted severly, so hence , no chance ,, now im being told that in order to clear my mortgage within the 13 years left , my mortgage payments will increase almost 3 times the current payment , any help or advice would much appreciated ..

Yorkie1

How much do you owe, and how much is the property worth?

Building_Surveyor

Do you have any savings which could cover the capital left over?

smokiejoe03

hi approx 145k left , last valuation was 180k, but i do have a secured loan for approx 35k aswell,,,,,


and no savings unforunately

thanks

R_P_W

Who gave you this wrong advice? Same people that forced you to get credit card debt and further secured debt?

Can you not make overpayments?

Thrugelmir

The banks crashing has resulted in far lower interest rates. So not the cause of your problems.

As you've 13 years to go. Pay what you can afford into the mortgage and see how things go. Whilst trying to find any ways of saving money/boosting your income. No easy answers. Perhaps plan on downsizing once you've built some equity up.

smokiejoe03

yea the same people consolidated every thing ,

and yea i could possibly over pay something , but not much , cos im with a debt management company trying to repay off all the cc debts,

and cant downsize at the mo , still got my kids living here

thanks

smokiejoe03

doe,s any one think , that the mortgage company would extend the length of the mortgage to enable lower repayment terms ?

Thrugelmir

That is a possibility. Once you are clear of the DMP. If you can show willing by reducing the mortgage by whatever you can as well. Then in some years time extending the mortgage may well be an option.

silvercar

smokiejoe03 wrote: »

and cant downsize at the mo , still got my kids living here

thanks

Could you downsize in 13 years time?

I have friends whose whole strategy is to pay interest only now and downsize when the kids leave home.

smokiejoe03

thats a possibilty , but maybe a must when the time comes, hoping that property values increase big time,