On a Interest Only payment scheme...

Tony_C_2

Hi everyone, when I was made redundant 5 years ago, we changed our Cheltenham & Gloucester Mortgage payment plan from a Fixed scheme to the Interest only scheme.
It was our original plan to sell up and then use the profits from the sale to pay off the mortgage in full!

Anyway, things didn't work out as we hoped and I was on Agency work until March 2014 and having spent the past few months clearing debts, I will very shortly be in a position whereby I can start looking at trying to sort out the mortgage but I have a couple of questions and wonder if anyone here can advise which would be the better option...

Firstly, the outstanding debt is approximately £141000 and I will be 55 during 2015 so have around 11/12 years until retirement and I will be speaking to Cheltenham & Gloucester (TSB?) at some stage to see what they can offer but...

1. If we decide to set up a savings scheme to cover the difference between the Interest Only payments and the final outstanding balance, is there a specific savings scheme I should be looking for and are the any recommended companies that offer such saving schemes?

2. Given that we have been on a Interest Only scheme for the past 5 years, will other Mortgage providers even consider looking at us, should we decide to move our mortgage?

Many thanks for reading and I look forward to any advise being offered,

Tony

Thrugelmir

First option is to look to switching back to a repayment mortgage. Second option is pay whatever you can off the mortgage, as you've always got the backup of selling the property to settle the mortgage.

Given your age you may wish to start thinking ahead and start planning for the future. Is selling and downsizing an option now an option for example.

getmore4less

£141k over 12years @ 4% £1235pm

Tony_C_2

Thanks both, I'll have a word with our mortgage provider