6yrs 11mths left on interest only - advice please

midebt

Thrugelmir wrote: »

Why not downsize now and buy a property on which you can afford to repay the debt before you retire?

yes that a possibility .....to buy a small terraced house ...= less mortgage...

thanks will add this to my list....

silvercar

Do you have a pension due, with a lump sum payable? Extending the term to 15 years reduces the payments to £651 per month. If that is too high, making a lump sum repayment when you retire would reduce the outstanding amount and hence future repayments.

midebt

silvercar wrote: »

Do you have a pension due, with a lump sum payable? Extending the term to 15 years reduces the payments to £651 per month. If that is too high, making a lump sum repayment when you retire would reduce the outstanding amount and hence future repayments.

we have pensions on our retirement - we wil have to do a recount on how much will be paid as a lump sum....its not in the thousands etc ...but will certainly not be enough to clear the mortgage ....prob amounting to about 10'000.00

midebt

but we do have death in service payment :A

ValHaller

How much can you realistically afford each month?

midebt

ValHaller wrote: »

How much can you realistically afford each month?

no more than 700 a month.....which ive looked at some mortgage comparison web site and see that we can get a mortgage of about 55 to 65'000.00 for the 7rs remaining till hubby retires

thats if we can sell the house and have a 20'000.00 deposit

silvercar

Would you delay retirement, or alternatively is your pension enough to pay the mortgage into retirement? A 14 year term would mean that you could stay where you are now.

ValHaller

I agree with silvercar, it looks like a 14 year term would do it - if interest rates stay stable. You really must start paying in that £700/month now and add to it every spare £1 you can lay your hands on. Your alternative is to downsize immediately and still put away the same kind of money.

midebt

where's this ''14yr'' thing comin from.....hubby retires in 7yrs
i retire in 9 yrs.....

we do not have a big enough pension to pay it off when we retire ...like i said maybe 10 grand ....

the 650/700 max is from our earnings ...what we could pay whilst we are working each month for the remainder of our working yrs ....

CFC

You need to start paying the £700 a month immediately to start reducing the outstanding balance, unless you are going to sell in the next month or so.
Have you considered letting a room, yes, I know it's not nice to have strangers in your house, but that may add another 300 or so to what you could afford to pay. Remember your capital payment from your pension doesn't need to clear the whole lot.

If you could extend the mortgage a few more years, you or husband might get a pay rise which would allow you to pay more.

If all this seems a bit stressful, start thinking of downsizing. Whatever you do, do not just leave your payments as they are now and then sell up in a couple of years, you will do yourself a huge favour by starting to reduce the capital debt, while you can afford it. Literally get that monthly payment changed tomorrow, ready for your next payment.