going interest only?

elseychelsea

Hello all,
Me and my partner have split up we are still friends, we owe 88k on mortgage and house is worth approx 120k when finished, we have decided not to sell straight away with the market being rubbish and the fact we have no kitchen in at the moment, and cant afford one right now.

I was wondering if it would be wise to switch to interest only for a while so we could get money together for a kitchen?

thanks in advance.

poppy10_2

Could well be. You will need to have a fairly clean record of payments before the mortgage company will allow you to go interest only, but with substantial equity in your property, I can't see it being a problem.

happybroker

on a 25 year mortgage switching to IO would save you about £120 a month on £88k. Consider how much this would help before switching.

check out all you local kitchen retailers, where I am they all seem to be refitting show rooms and selling off the old ones. It depends on the size of your kitchen but I looked at one last weekend that would fit out a smallish kitchen, granite, appliances, the lot for £1000!!

Ebay also

Good luck

sarkin

contact your lender they will let you go to interest only, if anything peole with bad credit would go to interest only straight away. Remeber the lender has to be seen to treating the customer fairly.

I think about 25% of all mortgages are I/O for obvious reasons.