Large mortgage..struggling....eeeeek!

[pearshape]

We've taken on too much. We took a mortgage out 6 months ago on interest only and really stretched ourselves, but thought we'd be ok. We were actually so optimistic that on the second month we phoned the mortgage company and swapped it to repayment as we felt much happier knowing we were paying off the balance. DH self employed, work slowing down so question is can we swap back over to interest only? I know there's an admin fee involved but is it ok to swap from one to the other when times are hard or are there implications.

We can't sell and downsize as are tied in for 2 years (and really really don't want to). Next year one of my dcs start school and I can then look for a job so things will be brighter.

[redshoes]

we are with bank of Ireland and can swap repayment/int only really easily.

[redshoes]

Would imagine same procedure as when you phoned them and switced to repayment??

[redshoes]

switched, even

[redshoes]

Oh, and of course implication is that int only doesn't pay off capital, so at end of motgage you will still owe what you owe now...

[DizzyBint]

perhaps change the term of the mortgage? how long is it over at the moment?

[MissGolightly]

I would ring the mortgage company and ask their advice. You might even be able to take a payment break, best thing is to speak to them direct about the options.

[pearshape]

thanks for the replies. i think ringing the mortgage company is probably the best idea. I just wasn't sure if it was ok to change the repayment terms once you've done it already. I know that obviously interest only isn't paying off the balance but hopefully it will only be for a year until i can get back to work. Really wish we hadn't bought such an expensive house now, but we just fell in love with it