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Need to go to repayment - backed into a corner

Better_choices
Posts: 1 Newbie
Hey I'm new on here and I have been thinking about posting for some time ..here goes
We are on interest only mortgage £202k and 16 years left - can just about afford 100% repayment (Santander) but will be a squeeze nonetheless it has to happen!
My question is that I have £8k credit card debt but £6k share plan so do I
A) pay off cc and remain with Santander
pay £6k off capital and move to First Direct who can offer better rate
C) keep share plan and pay cc (which are on 0% interest until next year) and try for small overpayments to get my capital down with Santander?
Feel this is a simple question but struggling with it in my head hence posted!
Any thoughts? :mad:
We are on interest only mortgage £202k and 16 years left - can just about afford 100% repayment (Santander) but will be a squeeze nonetheless it has to happen!
My question is that I have £8k credit card debt but £6k share plan so do I
A) pay off cc and remain with Santander

C) keep share plan and pay cc (which are on 0% interest until next year) and try for small overpayments to get my capital down with Santander?
Feel this is a simple question but struggling with it in my head hence posted!
Any thoughts? :mad:
0
Comments
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If money is tight I would make overpayments on the interest only mortgage rather than change to repayment. That way you don't hit trouble if you can't afford the repayments at any point.
No point paying cc if the interest is currently 0%, better to make a regular savings account (which will gain you some interest) until the 0% runs out, then clear the balance.
Are there benefits to keeping the share plan going? If so keep it running. Does depend on the underlying share price though.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Depends on the potential of the share plan surely?
As SC says, overpay Santander rather than getting into contracted full repayment contract.
That way you get the same effect with flexibility if things do get tough.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
I would have thought a realistic repayment vehicle is your main priority or change to full repayment? Basically, an interest only mortgage is not a replacement for an unaffordable capital and interest repayment mortgage, and somehow you have still managed to rack up £8,000 of credit card debt - the fact it is 0% interest makes no differernce - the debt is still there.
Rethink your finance and plan to transfer to a repayment mortgage ASAP.0
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