should we go for intrest free for a while

stanhead

hi, we are thinking of getting intrest free for a while because two sons at university plus a couple of loans outstanding and a new kicten to pay for. Our morgage is £93000 and house is worth £300 000 including endowment of £31000 which will only pay £26000. which ends in 2010. About 18 years left on morgage. We have never missed a payment for twenty two years of paying. Or do we move house to cheaper one but this will take time. What do peeps think

Lorian

Interest free what? Mortgage?

stanhead

yes sorry intrest free morgage

ponsmort

The only trouble with changing to interest only is that it is very painful when you want to change back (if you ever get round to it!)

Are you tied in with your existing lender? Not knoiwing everything about your circumstances I would probable say put house on the market and change to i/o in the meantime. Then change back when you move.

michaels

I suspecrt costs of moving if you don't have to will make that an uneconomic change. Is it not possible to put off the kitchen till the uni fees have finished (new cupboard doors, new lino, paint walls)?

What I do is interest only on mortgage then put capital payments in to isa - with a good rate this is actually slightly cheaper overall, means I don't waste isa allowance and gives flexibility...but it does require discipline to make sure the isa payments are made.

stanhead

Thanks for feedback. i have no ties in. Kitchen needs paying in the end of Jan 08. where do i look for intrest only on MSE. thanks ian