Re mortgage query

Nicolapink

Big thank you to all who took the time to reply. MUCH appreciated. Xx

Boredatwrork

I think Phil, makes the wider point that seems to be missed by so many people on interest only mortgages, that You still have the ability to make over payments, which will help your LTV, decrease your monthly payments and make the final number a little more managable.

Thrugelmir

Boredatwrork wrote: »

I think Phil, makes the wider point that seems to be missed by so many people on interest only mortgages, that You still have the ability to make over payments, which will help your LTV, decrease your monthly payments and make the final number a little more managable.

There's debt to pay first and the mortgage term ends in 14 months. So a limited window of opportunity to make a significant difference.

Boredatwrork

Yes you are right.

I was just making a wider point, from my experience lots of people on IO seem to be on the dark about overpayments.

Thrugelmir

Boredatwrork wrote: »

Yes you are right.

I was just making a wider point, from my experience lots of people on IO seem to be on the dark about overpayments.

You are right. People need to help themselves. Even if it doesn't provide the total solution.

MortgageMamma

Hi Nicola I hope you are feeling a little better about things.

I still think you need to speak to adviser to help you with your budgeting, look at those debts and how is best to pay them off and then at the mortgage situation. The sooner you do it the better. I do agree with Phil's sentiments about overpaying an interest only mortgage, but I know you have to have a lot of self discipline to do that so before you adopt that strategy ask yourself - do you want to take the risk you cannot make enough overpayments voluntarily and for the mortgage balance not to be fully repaid at the end of the term?

I personally think if you can afford to you should switch to repayment, you then have a guarantee that it will be repaid and you won't be worrying when you are in your 60s if you can keep a roof over your head.

Have a google of something called "budgetbrain" that will help you get your figures on paper before you see an adviser, and it will tell you how much you are overspending. If you are overspending a lot visit the moneysaving old style and families board and see if there is a way you can reduce your normal living costs. I did that exercise a couple of years ago and I got my family shopping bill down from £160 to £90 a week (4 adults, 1 child, 6 pets). Its well worth doing!

Nicolapink

Thanks mortgage mamma, I'm still a bit stressed however I need to get out of my overdraft and get these cards paid off. There's a default to drop off in August. Hopefully that will help the situation and I can then move forward and apply for a repayment mortgage. I'll keep my head down and keep the spending to a minimum... In terrified though xx

Thrugelmir

Nicolapink wrote: »

Thanks mortgage mamma, I'm still a bit stressed however I need to get out of my overdraft and get these cards paid off. There's a default to drop off in August. Hopefully that will help the situation and I can then move forward and apply for a repayment mortgage. I'll keep my head down and keep the spending to a minimum... In terrified though xx

Don't panic. Pat yourself on the back for taking charge and getting to grips with the situation. Resolving ones own problems is a major plus for lenders . As learning from experience normally results in a permanent change in attitude to personal money management.