how to work out interest?

asparagus1968

hi,

if I lost my job, and had to "go interest only" on the mortgage fro a while..
1.do the mortgage lenders just agree/disagree or do you have to take out a new mortgage?

2. if my mortgage is 55,000 at 3.59% what would the interest only payment be monthly?

thank you:)

Senior_Paper_Monitor

Varies on a number of factors - lender, overall finances, LTV etc (almost certainly not a new mortgage)

£55,000 pa @ 3.59% pa = £1,974.50 pa divide by 12 = £164.54 pm



Incidentally, such arrangements are inevitably bad news on future credit rating - avoid if at all possible. Try to build up a reserve and keep it 'ringfenced' for such circumstances

asparagus1968

thank you, hopefully won't need to embark on this.....

ACG

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml - this should help your calculations.

If your worried about not havin a job either because of unemployment and/or ill health then you should be looking at unemployment cover/accident sickness and unemployment cover/PHI - Income Protection.

There is no guarantee a lender will offer interest only, so you should be prepared as much as possible assuming worst case scenario.