Help

choccy999

Hello,

I was wondering if anyone has any opinions on this? Feedback wouldbe appreciated.

I am on a DMP with Payplan and my mortgage fixed rate is up in Oct, so I called up Who's Lending who are a sister co of PP to see what my options are.

Total unsecured debt is approx £8 and my mortg is currently £83k on interest only 6.39%, monthly payments £444.

I thought that it would give me a chance to clear the debt with the equity in my house, but they said that they could lend me up to £98k interest free, but only £83k repayment on my current salary, so they have advised me to approach my current lender to see if I can get another fixed rate with them and to contact them if my circumstances change??? I doubt I'm going to have a whopping payrise sometime soon.

I feel a bit miffed as I thought that they would help sort things out, but have said that they can't really help.

My feelings on this are not good. I'm getting the feeling that selling the house is going to be my only option, as from the payments, I am never going to own it as I will only be able to afford interest only and will have to keep stretching the term to make it cheaper and I'm in my 30's already!! I have thought of the lodger option too, but at the moment my house is in need of decoration which I can't afford to get done either.

Anyone have any pearls of wisdom to share?

Many thanks,
Choc

choccy999

Hi guys,
Please can anyone give me some advice on this. Total unsecured debt is £8k not £8.
Many thanks.

choccy999

Yes, sorry interest only.

I have asked my lender and they are going to call me back in a couple of weeks, as that is when the penalty charge would cease to exist. I am also going to speak with a mortgage broker for other deals.

At present I am on a temporary contract until May 2008, with a view to being placed on a fixed term contract beyond then - I was worried that this might affect my viability as it is working for an agency.

My main thought is if I can only afford interest only again, then is there any point having this house as I am no closer to ever owning it???

My income is £18.5k

Many thanks

choccy999

Thank you. I did say interest only on my last post too