We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Mortgage Advice please

Options
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?

Comments

  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    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
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • GirlRacer_2
    GirlRacer_2 Posts: 3,026 Forumite
    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
    JoeK_3 Posts: 1,374 Forumite
    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
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.5K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.