Interest only mortgages or other short term ways of reducing payments

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  • Niv
    Niv Posts: 2,460
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    As Pixie suggests get over to the debt free wannabe board - and post up a SOA.


    I would also look at extending the mortgage term. I am with Nationwide and they accepted me for a mortgage that ends when i am 1 year into state retirement. This works to reduce the monthly while still having the option to overpay if you have it. So I have a 30 year mortgage but overpay it to a level that means if i continue it will be paid over 20 years (about 18 now woop!).
    YNWA

    Target: Mortgage free by 58.
  • Niv
    Niv Posts: 2,460
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    Forgot to add. Also look into interest rate breaks at different LTV which would also help potentially as you do have some cash in the bank.
    YNWA

    Target: Mortgage free by 58.
  • comeandgo
    comeandgo Posts: 5,731
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    We are with nationwide and our mortgage runs until my husband is 75.
  • sal_III wrote: »
    I'm afraid you don't really know how the 30 hours free childcare works. Depending on where you live and the cost of childcare it might only cover 1/2 (or even less) of the cost for full time nursery. Even with the best case scenario 30 hours are little over 3 days so you will have to pay for the rest or one of you won't be able to work full time. I suggest you ask around and check the waiting lists, some areas like London you have to sign up 6-12m in advance to get a spot in the nursery.

    Then it's time for school, depending on how long your commute is the breakfast and afternoon clubs might or might not be sufficient to allow for full time job. In some schools the places in these are limited even if you get a spot it costs money. If you miss out on them means that you will have to drop off at 8:30-45 and pickup ad 15:00ish can you do that on your full time job?

    Even then kids get sick all the time, does your full time job(s) allow flexibility around that?

    It's time to take long hard and realistic view of your finances and make a decision whether you will be able to keep up with the mortgage repayments in the long run? It might be time to cut your losses and downsize, change area, before you dig yourself in even bigger hole.

    Whilst the free hours will/ might be a help, we can cover full time nursery fine (and have been doing so with money to spare for the last 12 months). School pick-ups, sick days etc are also ok as I can WFH and have flexi days. Long term isn't a problem. The issue really is just these next 2 years whilst my wife is off 2 days a week with the little one.
  • Niv wrote: »
    I would also look at extending the mortgage term.

    That's definitely something we'll consider. Thanks.
  • Pixie5740 wrote: »
    Why have you discounted cutting back on other areas?

    Partly because we don't have very lavish lifestyles (no car, expensive clothes, Sky, iphones etc) and the small treats we do allow ourselves (Netflix, the occasional new LP etc) I'm not prepared to give up when it's not essential to do so.
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