Re-mortgage - any options available?

choccy1972

Hi

I've had my mortgage for 9 years with the same company. At the time I applied, my ex-partner defaulted on some payments that were in my name so I couldn't get a high street mortgage.

I'm now on an interest only variable 30 year mortgage. When I took it out I was lent up to 4.5 times my salary. I borrowed £84000 which I still owe as I have nothing in place to repay it. My credit file has just had a CCJ removed so I'm looking to see what I can do to pay off my mortgage. The only problem is that I've changed careers and now earn around £15k per year (I'm classed as a contractor). I'm also over 40, so worried what I'm going to do and the future. Although my mortgage repayments are currently very low which is good, I'd like to take some action to move towards getting straight financially.

Any advice would be appreciated please?

Thanks.

lee111s

Without earning more money you're not going to be able to get a bank to lend you that amount of money whilst on that salary. You say your payments are low, does your mortgage allow you overpay and effectively start clearing the mortgage?

Foxy-Stoat_3

If your interest is low enough, maybe all you need do is over-pay or save £280 a month into ISA's and Premium Bonds. In 25 years your mortgage will be paid off, maybe quicker if your win !

As the amount you need to borrow is over 5 times your salary, you will struggle to get a new deal.

kingstreet

See if you can get a customer retention product from your existing lender to lower your rate/payments, then use the savings each month to overpay the mortgage so you repay some of the capital not just the interest.

When your income recovers, increase overpayments to get it repaid by the end of the term or sooner.

choccy1972

Thanks for your replies. I'll contact my current lender and see what I can do.