How to deal with end of interest only mortgage after completing DMP

getmore4less

You need to have the details to hand if you want to sort this out.

Amounts owing, rates, terms, payments.

This should have been done in 2010 when you started the DMP and reviewed regularly.

If that £60k is £237pm that 21 years+ term or is that interest only as well(4.74%)?

Looks like you have been sitting on Santander SVR when you probably could have switched onto a retention deal.

Review this ASAP could give you a head start over the next year.

clairebeth

Could you not change to a repayment mortgage on a significantly lower interest rate? Presumably your monthly payment won't change much if you change to repayment and get a lower rate? Or is this perhaps not possible on a DMP? I hope you haven't been sittingthe svr for too long, what a shame, that money could have paid off all your debt.

bertiewhite

CheerioCreditCards wrote: »

Also, even small houses in our part of the country are pricey. We are in the SW.

Doesn't mean you have to stay there. West Wales is cheap.

haras_nosirrah

honestly if you retire I would sell the house and pay the mortgage off. If you can't get another house where you are you may need to move to a cheaper area of the country.

If your husband has a small pension how are you going to continue to service a mortgage? If the plan is to stick some money in the bank to pay the mortgage what happens when the money runs out? If you are within 10 years of state retirement age most lenders go from retirement income rather than employed income if your mortgage goes into retirement age. If the new mortgage goes into retirement then either the mortgage will be too much on your pensions or if you manage to get another interest only they are going to want that money back at some point

you are better off moving voluntarily when still relatively young and healthy and able to integrate into the community than being forced to go at an older age when it may be harder to move.

see if santander will let you move to a new 5 year fix rate and save the difference, when your dmp finishes save the money or stick it in a pension - you can claim back tax relief, take 25% tax free and also get a bit more income to live on later.

CheerioCreditCards

Thanks for all the replies and advice everyone. Lots to think about, but one thing is for sure, we’re going to get the ball rolling sooner than later. I think the first port of call is to contact Santander and see what they suggest.