Mortgage repayment help

Days121

My husband and I brought a house with the help of his parents as they took £60000 out of their house for a deposit and we were advised from a financial advisor that when our house increased that’s how we would pay it back.

With a market crash years ago (which made us get into debt) and low income we have only ever payed the interest only payments on their mortgage and have over the past 2 Years an additional £300 a month, we haven’t had any additional funds to pay any more into a savings account.

We have a mortgage to but only pay interest only as at the moment it’s all we manage and we have a flat that we rent out too. I am not sure if there I is any equity in the property’s.

I started a buisness 2 years ago which has significantly increased my income and my husband has now worked his way up to a managers position so we are now in a better financial position and have now payed our debts off too.

My husband has a good credit score but has the two mortgages and a sofa and a car on his credit file (the sofa we can pay off quite quickly )

My credit score is ok but I only have 2 years self employed records .

We are fully aware this is a bad situation to be in but are in a better position now to sort this out if that even possible. We have many sleepless night about this situation.

The £60000 is due to be payed in two years and we don’t know what to do.

Can we remortgage, do we get a loan , do we cut all our bills to the bare minimum, get rid of our car etc and then save as much as we possibly can, or main concern is that this gets paid so that my husbands parents are ok and there is no family fall out, even if it means our financial situation becomes worse, we can focus on that once their-mortgage is paid.

Please help any advice welcome

Thanks


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[Deleted User]

You'll need to list out the mortgages, property values, incomes and what your credit files looks like (not the pretend scores, but the actual data).

You certainly need to find out the value of your properties as well.

sal_III

Days121 wrote: »

We have a mortgage to but only pay interest only as at the moment it’s all we manage and we have a flat that we rent out too. I am not sure if there I is any equity in the property’s.

You should start by calculating how much equity you have in the 2 properties you own.

Market value (real based on recently sold in the area, not made up EA number) - Outstanding Mortgage balance = Equity

Why on earth you have a 2nd property to rent out while you struggle to pay interest only mortgage on your home is mind boggling.

getmore4less

Days121 wrote: »

.... his parents as they took £60000 out of their house for a deposit

......
we have only ever payed the interest only payments on their mortgage

have been declaring these payment to HMRC?

Days121

Thanks for your reply we were young and badly advised… just trying to do the right thing now

Thrugelmir

Have matters progressed at all?