Mortgage / Debts HELP!!!

gemmylouise

I am feeing so anxious!

I bought a property when I was 21 in 2007 for £72,000 and the mortgage was 65,000 interest only for 15 years!

During that time I had debts of £20,000.

I went on a step change debt plan and have paid off £5,000 of my debts to date.

Halifax now want to talk to me about what my plan is with my
Mortgage as the term is only until 2022! I'm sure I will have paid my other debts off by 2019! I would then have the spare cash to switch it to repayment. They don't know about the step change debt plan.

I thought I was doing the right thing in paying off the credit card debt before the mortgage.

I don't know what to do. If I sell it I would probably just get my
Money back!

I fell so stressed

chevalier

First of all take a breath you sound panicked!

Secondly I am pretty sure this is a standard letter your mortgage lender has sent out because you are down to five years to go.

Thirdly you can check on rightmove.co.uk what your house is worth now. I would be astonished if you didn't make a profit on it.

So you had 20k debt and you have paid off 5k? So will you have paid off the other 15k by 2022? If not and you want some help with regards being more frugal then fill in the SOA at the link below and format it for MSE and post it on here.

You may be able to get another job whereby you could put that money away to start making a buffer for the mortgage when it ends?

It is probably worth checking out with your mortgage lender how much more a repayment mortgage would be so then you will know how much more you will have to find each months.

good luck
chev

gemmylouise

I actually breathed a sigh of relief at this response.

enthusiasticsaver

You can change to repayment mortgage in 2022. You will still be relatively young so can go for a reasonably long term if you need to keep the repayments low still. Luckily there seems to be no sign of interest rates rising so I would not worry too much but just focus on getting rid of the debt asap so that you just have the mortgage to worry about.

gemmylouise

enthusiasticsaver wrote: »

You can change to repayment mortgage in 2022. You will still be relatively young so can go for a reasonably long term if you need to keep the repayments low still. Luckily there seems to be no sign of interest rates rising so I would not worry too much but just focus on getting rid of the debt asap so that you just have the mortgage to worry about.

Thank you so much for this reply. It has really helped me! I have improved by credit score by 102 points in the last year, 40 points last month and I'm only 40 off the national average now! I need to focus on the positives and the amount of debt I have paid off.

My partner freaked me out because he thinks it is so appalling to be on interest only but he's only 25 and I'm 30 so you are right there is plenty of time to pay off a mortgage! His partners have just got a mortgage in there 40s!

I think I will continue to work hard on paying my debts and improving my credit score and worry about the mortgage later on!

Thanks for the advice

fatbelly

gemmylouise wrote: »

I think I will continue to work hard on paying my debts and improving my credit score and worry about the mortgage later on!

I think that's the right attitude but don't be too hung up about the credit SCORE. That's not the scientific measure it pretends to be.

There are things you can do to improve your credit FILE and they are set out here

http://www.moneysavingexpert.com/loans/build-credit-history