Interest only mortgage ending in 12 years need advice

Judy_carr

Hi,
I need advice please myself and my partner have a joint interest only mortgage. For £112,000. The house is probably only worth £95,000. So we're in negative equity. I work full time and my partner is disabled and gets pip. We just about get by month to month. We're just treating the house as a cheap way of renting by paying the monthly interest. So my question is what if I fall sick we couldn't afford the monthly mortgage interest I struggled recently when I was off work for 3 months. Work paid me for 2 months but the last month I only got SSP. We struggled but managed to pay the mortgage and not fall behind. But I'm worried about my future health. Do I sell up make a loss or rent what do I do. Is anyone else got the same problem? Any advice please?
:j

ACG

You may be able to get SMI but that is in effect a loan rather than a benefit now.

If you are generally in ok health and you are just concerned about the future, you might be able to look at PHI (Income protection), it is an insurance policy that can pay you an income if you are unable to work.

Depending on your age, health and other things it can be expensive. But there are things that can be done to get the premium down.

As for your mortgage, there is probably not a lot you can do there, if you do not have the income to overpay then ultimately there is going to be a time (within the next 12 years) where this is all going to have to be sorted out. It could well be sooner, I have heard if we remain in the EU it is likely interest rates will rise sooner rather than later, but I suppose it is inevitable rates will rise within the next 12 years no matter what happens.

chelsea2018

Overpay each month if you can

Thrugelmir

chelsea2018 wrote: »

Overpay each month if you can

Seems as if OP just manages to get by.