Mortgage Advice please

GirlRacer_2

My repayment deal is coming to an end in October and I am looking for some advice. I current have a mortgage for £70,000 (paying £465 per month) and a secured loan for £35,000 (paying £310.00 per month). I'm meeting the repayments at the moment but would obviously like to try to save some money here. Would I be better off changing my mortgage to interest only (I don't have an endowment, but I do have an NHS pension) or would I be better having a repayment mortgage for £105,000. Property currently worth about £115,000. What are my options here?

JoeK_3

Ask your current lender for a new deal and the possibility of a further advance to pay off the secured loan.

If not, look to remortgage.

The interest only option should be the last resort and all other possibilities should be explored first.

What is your income?

JoeK

GirlRacer_2

My income is £24500 so I don't know if my current lender will loan me enough to cover the secured loan. About £10K of my earnings is made up of tax credits, child support and child benefit!

My current lender stated that to go interest only (which I would only do for 5 years maximum) I'd need either an endowment or a pension. Would an NHS pension be sufficient?

JoeK_3

The lump sum payment when you retire from your NHS pension scheme would need to match the outstanding mortgage amount.

It sounds like you may need to remortgage with another company.

When you do, you may want to extend the mortgage term to reduce the monthly payments.

JoeK