Due to suffering from depression, me and my husband ran up major debts of £30k+ 4-5 years ago. We have made a huge effort to get everything under control and have cleared all our personal debts apart from £5k (plus a £120k mortgage). We still have a bad credit rating and we remortgaged almost 4 years ago with a sub-prime lender. Due to increasing interest rates, we are now paying 9% APR with a mortgage payment of £935 per month on a £120k interest only mortgage. Although we both work full-time, we have 3 children and are finding it increasingly difficult to keep up the repayments. There is currently a redemption penalty of £7k which reduces to £1200 in July 07. Should we remortgage now and pay the £7k or wait till July but struggle till then to make the repayments? I am worried we will go crazy locked into these repayments and be off work with stress before then and be unable to make the mortgage payments and risk losing our house? Please help...!
2007-02-05
23:12:50
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8 answers
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asked by
Karen J
1
in
Credit