Leaving my mortgage early

ShaneTKD

UK007BullDog wrote: »

Looks and sounds like 100% plus mortgage on interest only with Northern Rock as the OP states. He thinks it is a repayment but if he is just paying £550 per month then it is an interest only mortgage and the statement amount stays the same.

You might also have an exit fee.

You might just come out of it without any debts as flats took a hammering and still are not selling well.

Find out what you could get for your flat.

Just used the calculator and it is definately an interest only mortgage. Did you take out a loan as well with it?

When i took this out i was told it was a repayment mortgage, not interest only.
I will ring northern rock to clarify.

The "independant mortgage advisor" advised that because i was borrowing 100% on my wage only that the only way for me to do this was by having a mortgage of £81k and i personal loan of £16k to make up to the £97k which i needed.

ShaneTKD

Called Northern rock to clarify, It is definitely a repayment mortgage. Its their Together mortgage.

my mortgage was for 34 years by the way!

beecher

ShaneTKD wrote: »

Called Northern rock to clarify, It is definitely a repayment mortgage. Its their Together mortgage.

my mortgage was for 34 years by the way!

Wow, no wonder they went out of business when they were giving out 34 year, 125% mortgages. It should never have been allowed.

I'd definitely get the flat valued and get an idea of estate agent fees too. It seems likely you may have to take a hit to get rid of it - any way you can keep it on?

ShaneTKD

beecher wrote: »

Wow, no wonder they went out of business when they were giving out 34 year, 1205 mortgages. It should never have been allowed.

I'd definitely get the flat valued and get an idea of estate agent fees too. It seems likely you may have to take a hit to get rid of it - any way you can keep it on?

I wont be able to keep it on, i couldn't even rent it out for enough to cover the mortgage payments.
Fingers crossed i break even

UK007BullDog

OK, that explains the figures, the main amount reduced and over 34 years then yes its repayment as they have advised you.

You really need to find out what the value is of your property. try www.ourproperty.co.uk or ask your local estate agents.

Sorry for being so nosey, can you tell us why you want to break out of the mortgage?

beecher

Good luck - do you have the space to take in a lodger maybe?

ShaneTKD

UK007BullDog wrote: »

OK, that explains the figures, the main amount reduced and over 34 years then yes its repayment as they have advised you.

You really need to find out what the value is of your property. try www.ourproperty.co.uk or ask your local estate agents.

Sorry for being so nosey, can you tell us why you want to break out of the mortgage?

I'm in desperate need of a career change. The job i'm in now pays quite well as it allows me to have a house on my mortgage alone.
I wouldn't earn this amount anywhere else.
If i sell the house and clear my mortgage i am no longer tied to the job i'm deperate to get out of.

ShaneTKD

UK007BullDog wrote: »

You really need to find out what the value is of your property. try www.ourproperty.co.uk or ask your local estate agents.

Late last year they were selling for £111k to £120k

2006 they were going for around £103k

beecher

ShaneTKD wrote: »

I'm in desperate need of a career change. The job i'm in now pays quite well as it allows me to have a house on my mortgage alone.
I wouldn't earn this amount anywhere else.
If i sell the house and clear my mortgage i am no longer tied to the job i'm deperate to get out of.

If you're coping with the payments, I think you'd be best just sticking with it and trying to overpay as much as is humanly possible until your fixed rate comes to an end. Not having to pay the £2400 could make all the difference. October 2010 isn't that far away really, so unless your work is having an impact on your health, I'd try to just keep going.