Mortgage Or Credit Cards

suemo63

Hi I have a part repayment and part interest only mortgage which has 12 years left on it. I know the repayment part will be payed off but what can I do to clear the interest only part. I remortgaged in 2007 with the Chelsea and my house was valued at £90,000 and took out an interest only of £74,000. I changed a couple of years later and hence the way things are. I owe around £61,500 now. I tried to remortgage in April but sadly my house is only valued at £63,000 so couldn't. The question is should I use my savings to clear my credit card debts or use it towards my mortgage and if mortgage off the interest only part or repayment. Would be grateful for advise as really want to keep our house!

ZoPig2016

It's all about the maths. You need to sit down, work out what the position is for each option and then choose. There's not enough info here to decide.

suemo63

Hi there is £35,000 on the interest part and I owe about £9,000 on credit cards. I hope someone can give me some advice? If there's not enough info what else is needed?

glentoran99

have you spoke to your current lender? Or did you try and remortage elsewhere? My lender is happy to give us a new deal as if it was 90% even though we are in negative equity

suemo63

We tried with another lender which was fine until we got the value. Our own lender isn't being that helpful if I'm honest. I am struggling to find a solution if I'm honest!

oliver1950

Suemo


firstly it may be worthwhile looking for one of those transfer your credit card debts credit card deals. there appear to be a lot that'll give you maybe 18 months interest free on transferred balances.


For your house to have fallen that far in value you must live ( as I did) in a rotten part of the country ( from a house price perspective) . I guess you took out about a 20 year mortgage in 2007.


First thing is are you sure your house valuation is correct?


secondly , subject to your lender not charging you and permitting it, you can pay of a little more each month, which will reduce the overall debt and eat into the interest only part.


However because you appear quite highly indebted I would advise you to go to the citizens advice bureau, either they can provide you with some free financial advice and support or they'll be able to point you to a local organisation that can help you. best of luck.

suemo63

Hi it was in 2007 and it's Liverpool I live so probably why my house valuation has dropped. I have some savings which could clear credit cards but wondered if paying them off or putting it on mortgage was the best thing to do? Any thoughts please?