15 years into interest only and...

rich251076

15 years ago my wife and I were just starting out and we bought at the height of the market got sold into a 30yr fixed 6.375% mortgage packaged by GMAC, the first 15 fifteen years being interest only. 270k loan at approximately 1500 a month.

Never having been well educated in the ways of money we signed up and the housing market crashed shortly after trapping us in the mortgage and our house price has only now come up just over what we paid.

Our loan got sold to Ocwen when GMAC died. Now after years of paying our mortgage switches to principle plus interest next year and the payments going way up to 2300 a month.

Its a bitter pill to swallow that we have just essentially paid rent for the last 15 years but it pretty much looks that way.

Ocwen tells me they don't offer refinancing and I can only think the alternative is to start again with another lender. The whole mortgage feels wrong and there's something fishy when even Ocwen can't tell me who the originators are.

Anyway looking for general advice. Fortunately we are debt free and have managed to save a. It of money this last year.

ACG

The originators were GMAC? Ocwen (I have never heard of) presumably are similar to one of the other companies who effectively just buy mortgage books and run the balances down.

Switch lenders, review the term and you will hopefully find something to get those payments down. Rates now are typically between 1-2% if you have a decent LTV.

You could have reviewed this 5-10 years ago probably saved a small fortune, got the balance down and been in a better position. But you are where you are, so it is just a case of making the best of the situation. On the upside even if it has been the equivalent of paying rent. At least you have not had any dodgy landlords and you have been able to do what you want to your home without having to ask permission.... Every cloud and all that.

getmore4less

ocwen are big in the US.

foxy-stoat

What is your repayment strategy for 2034 ?

This could be a blessing in disguise.

Thrugelmir

rich251076 wrote: »

Ocwen tells me they don't offer refinancing and I can only think the alternative is to start again with another lender. The whole mortgage feels wrong and there's something fishy when even Ocwen can't tell me who the originators are.

Lenders need to be regulated in order to underwrite and offer mortgages in the UK. A totally different scenario to buying up closed mortgage books and running them down to redemption.

You'll need to remortgage to a new lender. In the meantime overpay your mortgage by whatever you can afford. This will reduce the amount of interest you are paying every month. Likewise reduce the capital balance. Making switching to a new lender far easier.