When to contact your lender re mortgage problems

mm.mermaid

Due to the increase in interest rates we are now at a point that if the interest rate goes up again we won't be able to afford to pay the motgage in full. We don't have credit cards, we have nothing on HP so all our money is used paying the mortgage and bills. We have clawed back as much as we can from phone bills to utilities and are left with very very little at the end of the month. No one can help us unless we are actually in debt, but I dont want it to go that far and wondered and if when would be the best time to approach our lender for help/advice? Our mortgage is variable rate obviously and has 18 months left...any advice would be welcome.

silvercar

Only 18 months to go!

Is your mortgage repayment or interest only. If repayment then you could ask your lender to extend the term of the loan to reduce the repayments.

If you are really stuck you could ask to go interest only, but at some point you would need to consider how you are going to repay the capital.

GunJack

for the sake of 18 months, can't you both do a second/third job or something to try and boost your income for that short period, maybe ask relatives to help out, ask your lender to go onto a fixed rate ??? It seems like if you are so close to being mortgage-free it would be such a shame for it to all fall apart now.

herbiesjp

Can your current lender offer you a fixed rate deal? Would it be at a rate that would be manageable?

Some lenders allow you to switch and go onto a fixed rate, from a tracker/variable rate rate without penalty

Who is the lender?

mm.mermaid

I can't get a job now as I'm 7 months pregnant and was already at home with my daughter ...my husband already works all hours and our mortgage is already interest only....the plan was for me to find work in the new year and switch back to repayment mortgage, but now we can't even do that as it's already gone up so much. My husbands a bit worried about contacting our lender in case they mark our card! I've heard that maybe they can offer a few months break and add it onto the end of our mortgage.

silvercar

If your mortgage is already interest only, how was it being repaid in 18 months time?

homer_j_3

how much do u owe, what incomes do u have? What is the value of your house?

raq

yeap this is an interesting one. Maybe 18months left with the lender??? Don't know ...

GunJack

I would be very concerned now, if you only have 18 months left on the mortgage term, what means do you have to repay the loan ?? This may be a vital piece of info which could really help you out...e.g. do you have endownments maturing or suchlike ??

dwsjarcmcd

pretty certain the OP means 18 months of their deal to go, not the actual mortgage.

GunJack

But if they were on a "deal", they wouldn't be paying SVR now, though ??