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advice needed for mortgage

garbage456 Avatar
6y, 3m agoPosted 6 years, 3 months ago
right i will try and make this simple.

I have borrowed £140,000 over 30 years
on repayment I pay back £750 a month (interest rate was around 5.7% I think at the time)
fixed period due to end november 2011 can leave but a small charge (think its £150)
After my wages go in and all bills come out I have about £20 left at the end of the month)

I want to know what is the best (in your opinion) what should I do.

Go interest only but owe £140000 in 30 years
Underpay about half so to owe £70,000 in 30 years?
carry on repayment but go to another lender?
I really need figure to be around £400 a month.
With the money over every month I can guarantee I will save at least £200 every month.
My parents have the money in property and when they die(not nice to talk about I know but I need to be realistic) their house is currently worth £265,000 and I am the only child so I will get any monies left over.
Any advice will be greatly appreciated.
thanks !!!
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garbage456 Avatar
6y, 3m agoPosted 6 years, 3 months ago
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#1
with the parents having a property to leave you. ( I know its not nice to think about or talk about)

maybe you should look into splitting the mortgage into part repayment and part interest only.and bring the payments down to an affordable level. and then in a few years put more from the interest only onto the repayment part..but its only my view maybe expert advice would be better.
#2
also £700 seems a lot now but in 10 of 15 year it wont.
My mortgage started off at £200 seemed at lot but now it's abviously much easier.
#3
have you had a look at MSE MSE mortgages.
banned#4
I would seriously consider looking for a better job. I've put in for a job that will take 5+yrs to get to the same pay i'm at now but in the long term its a smart move. Better prospects.
#5
The debt doesnt just go though, I personally couldn't rely on money left for me to 'maybe' pay off my mortgage in the future.

Obviously something has to give though, hope you can get it sorted
#6
Don't ever count on an inheritance, there is no guarantee that you will get it.
#7
Thats my goal, to pay of my mortgage as quick as possible, the trouble with waiting for an inheritance so to speak is at the mo you wont be liable for any inheritance tax as the threshold is £325,000 (£100 in 1914 !), but with house prices as they are & with this government anything can change.
#8
(as I am sure the children will no longer be living with us in 30 years, LOL)[/quote]

Don't count your chickens ;-)
The way things are at the moment anything is possible.
#9
Where did you get this mortgage from in the first place?? It clearly isn't affordable if you only have 20 quid left over at the end of the month, unless you mean after you've paid for EVERYTHING ... Perhaps you could try looking at some of yr other outgoings and see if you can negotiate them down?
banned#10
Ouch. I got a brand new mortgage for a similar amount last year over the same period but got 3%. You definitely need to get a better deal when you can.
#11
Just a quick word of advice in todays climate and especially for the future unless your parents are incredibly wealthy i would not rely on inheriting any houses etc especially if your parents are quite young and healthy.
At the present time my nan is in a very nice residential home but is having to pay about £25000 a year that is not including any extras like hairdressing,etc.
After loosing my grandad about a year ago and having to sell her property we work out she will have 9 good years at the home by then she will be 98.Originally the original plan was to leave her property to my mum.Good luck for the future.
#12
archer1204
Just a quick word of advice in todays climate and especially for the future unless your parents are incredibly wealthy i would not rely on inheriting any houses etc especially if your parents are quite young and healthy.
At the present time my nan is in a very nice residential home but is having to pay about £25000 a year that is not including any extras like hairdressing,etc.
After loosing my grandad about a year ago and having to sell her property we work out she will have 9 good years at the home by then she will be 98.Originally the original plan was to leave her property to my mum.Good luck for the future.


That is so wrong, I don't want to detract from the original post, but you work all your life to provide for your family & your hard earned gets spent on care, for what you have being paying your taxes for !!!

Edited By: richp on Aug 22, 2010 16:39: .
#13
richp it may be wrong but unfortunately its todays reality and unless people become more aware this will happen to more and more families etc.
My nan and grandad probably like most of their generation worked very hard not having holidays for about 20 years of their life working 16 hour shifts every day they owned and ran 2 shops paid all their taxes,n.i. etc and saved everything they could for their future.
This is why my nan is able to go to a home of her choice and not one she has to goto where she would not have any say.
Thats why the idea of inheriting will soon if not already become a thing of the past unless you are super rich.
And as we are all aware the elderly population will continue to grow and live much longer due to medical advances etc.
#14
Better to go interest only than struggle with £20 left over for a few years only to loose the house in future imo.
#15
markone
(as I am sure the children will no longer be living with us in 30 years, LOL)


Don't count your chickens ;-)
The way things are at the moment anything is possible.[/quote]

lol, my little bro is 29 and STILL living at home, despite my Mum and Dads efforts to get him out!
#16
You shouldnt base your actions on what you might inherit, you cant foresee what estate you inherit and it may be drastically different to what you anticipate now for a number of reasons (e.g. if your parents go to a home they could very easily end up paying fees and effectively draining all equity they currently own)

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